Slide 1: Investor's Presentation for H1 2020
INVESTOR’S PRESENTATION FOR H1 2020 XTPL S.A. September 25, 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: Technology 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: Technology Others
TECHNOLOGY OTHERS xtpl.com 10
Slide 11: XTPL Ultra-Precise Deposition – 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: UPD Capabilities – Step coverage
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: UPD Capabilities – Step coverage
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: Ultra-Precise Deposition: Open defect repair on OLED
TECHNOLOGY XTPL ULTRA-PRECISE DEPOSITION (UPD) Open defect repair on OLED Line width Line width 1.7 μm 1.8 μm Line width Line width Line width Line width Line width 1.5 μm 1.5 μm 1.4 μm 1.4 μm 1.4 μm Printed silver line 10 μm Repeatable and continuous silver lines with a width of 1.5 μm, length of 2
Slide 16: Open defect repair on OLED
TECHNOLOGY XTPL ULTRA-PRECISE DEPOSITION (UPD) Open defect repair on OLED xtpl.com
Slide 17: 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 18: Protected Intellectual Property
TECHNOLOGY PROTECTED INTELLECTUAL PROPERTY XTPL global solution is systematically secured by expanding the patent cloud. The company has already submitted 17 patent applications. Unique and well-protected intellectual property • is a product • determines the company's market position • significantly
Slide 19: 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 20: 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 20
Slide 21: 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 22: 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 100 PROSPECTS • TALKS AN
Slide 23: 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 • The tested technologies include: Aerosol Jet Printing, Ink-jet • SUBPAGE ON THE WEBSITE printing, Mirco-dispensing
Slide 24: Herbert Wirth in the Supervisory Board
EVENTS HERBERT WIRTH IN THE SUPERVISORY BOARD JANUARY 2020 • on 9 January 2020, XTPL shareholders appointed Prof. Herbert Wirth, the former CEO of KGHM Polska Miedź S.A., to the company’s Supervisory Board • Prof. Wirth has significant experience in business development on global markets and unique
Slide 25: Cooperation with Cowin
EVENTS COOPERATION WITH COWIN FEBRUARY 2020 • on 28 February, XTPL S.A. and Suzhou Cowin Laser Technology Co Ltd based in China signed a Technology Evaluation Agreement (TEA) • Cowin is looking for a technology for repairing open defects in new generation displays • the aim of the proof of concept s
Slide 26: First Commercial Orders
EVENTS FIRST COMMERCIAL ORDERS MARCH 2020 • XTPL carried out three sales transactions of nanoink based on silver nanoparticles • nanoink is one of the key elements of the XTPL technology, protected by international patent applications • two deliveries were carried out for the partners operating in t
Slide 27: Paid Printing for Partner from Automotive Industry
EVENTS PAID PRINTING FOR PARTNER FROM AUTIOMOTIVE INDUSTRY MARCH 2020 • we prepared paid samples for a company that designs and produces semiconductor devices and sensors for the automotive industry • industrial partner is working on solutions for a number of technological challenges, including auto
Slide 28: Dual Listing
EVENTS DUAL LISTING MARCH 2020 • on 6 March 2020, the Frankfurt Stock Exchange consented to admit XTPL shares to the Quotation Board segment, which is a part of the Open Market • this step will facilitate the purchase of XTPL shares by investors, where such factors as valuation in EUR or the transac
Slide 29: Złota Strona Emitenta Award
EVENTS ZLOTA STRONA EMITENTA AWARD JUNE 2020 • XTPL was awarded “The Best Investor Relations Website” in the categories “small enterprises” in the contest Złota Strona Emitenta XIII organized by the Polish Association of Listed Companies (SEG). • the Company took a podium place next to companies lik
Slide 30: Successfully Completed Financial Round
EVENTS SUCCESSFULLY COMPLETED FINANCIAL ROUND JUNE-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
Slide 31: Expansion of the Patent Portfolio
EVENTS EXPANSION OF THE PATENT PORTFOLIO 6 new patent applications already submitted in H1 2020 • the first two patent applications submitted in 2020 are related to the method and apparatus for characterising and optimising ink flow in the printing head. H1 This method is generic and can be applied
Slide 32: 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 33: Significant Shareholders of XTPL
EVENTS AFTER H1 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
Slide 34: MainFirst Report
EVENTS AFTER H1 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
Slide 35: Selected Cash Flow
FINANSE DANE FINASOWE WYBRANE CASH FLOW Net cash flows from financial activities Net cash flows from operating activities Net cash flows from investing activities xtpl.com 35
Slide 36: Selected Balance Sheet Structure
FINANSE DANE FINASOWE WYBRANE BALANCE SHEET STRUCTURE xtpl.com 36
Slide 37: Selected Result
FINANSE DANE FINASOWE WYBRANE RESULT H1 2020 without ESOP including ESOP Revenue from sales 213 213 Research and development expenses 348 438 Gross profit (loss) -135 -225 General and administrative expenses 711 1 070 Other operating income and expenses 28 28 Operating profit (loss) -819 -1 268 Fina
Slide 38: 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 39: 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 40: Management Team and 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 41: 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 41
Slide 42: Thank You
XTPL S.A. Stabłowicka 147 54-066 Wrocław, Poland xtpl.com THANK YOU
Slide 43: 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