Ensilica Plc · LSE:ENSI
Ensilica — FY2022 Earnings Presentation
29 slides from Ensilica's earnings presentation, 2022
Slide 1: FY 2022 Results
EnSilica your trusted IC partner FY 2022 Results
Slide 2: Disclaimer & important notice
Disclaimer & important notice The information contained in this document (“Presentation”) and the presentation made to you verbally has been prepared by EnSilica Group Plc (the “Company”). EnSilica Group Plc is a UK company quoted on AIM, a market operated by London Stock Exchange plc. This Presenta
Slide 3: Presenting team
Presenting team Mark Hodgkins Chairman • Started working with EnSilica in May 2016. He is a chartered accountant and was formerly a partner at both Grant Thornton and Ernst & Young. Since leaving Ernst & Young in 2005, Mark served as CEO of a number of engineering businesses and a privately held ind
Slide 4: EnSilica at a glance
EnSilica at a glance A CLEAR STRONG EXISTING HIGH GROWTH POSITIONED TO MISSION FOOTHOLD MARKETS CAPITALISE To be the premier •EnSilica focuses on the • The global market for • EnSilica has a growing application specific design and supply of semiconductors is vast with pipeline and order book of chip
Slide 5: Strong operational progress delivered since IPO
Strong operational progress delivered since IPO • Successfully floated on AIM raising £6 million REVENUE • Strengthened global sales network (sales pipeline grown to > £350m ) + 77% • Automotive ASIC supply customer started volume production (shipped 700k chips, forecast for the next 12 months of 2.
Slide 6: EnSilica – a proven delivery model
EnSilica – a proven delivery model • EnSilica focuses on the end-to-end design and supply of chips through the fabless semiconductor model • Strong track record of delivering custom chips to established OEMs or well-funded start-ups, reducing customer risk and time to market • Strong relationships w
Slide 7: Growing market opportunities in semiconductors
Growing market opportunities in semiconductors • World-wide semiconductor revenue was estimated to be $600bn in 2021 and projected to grow to $1tn by 20304 • Custom chip are being widely used to differentiate market leading products • EnSilica expertise and IP addresses the highest growth markets in
Slide 8: Sales pipeline now in excess of £350 million
Sales pipeline now in excess of £350 million • Three ASICs released for production now with anticipated long-term supply revenue • Four new ASICs in the design stage and EnSilica currently working on several further design and supply opportunities Snapshot of prospective customers in the Company’s s
Slide 9: Financial highlights
Financial highlights Year End May 31 - £'000 FY 2022 FY 2021 Turnover 15,293 8,607 • Turnover increased by 77% to £15.3m in 2022 Consultancy & IP Licensing 7,275 5,784 Design & Supply 8,018 2,823 • Adjusted EBITDA and EBIT both increased compared to last year Adjusted Operating profit 705 (169) Adju
Slide 10: Income Statement
Income Statement Year End May 31 - £'000 FY 2022 FY 2021 Turnover 15,293 8,607 Consultancy & IP Licensing 7,275 5,784 • Design & Supply (“NRE”) represents customer-funded developments Design & Supply 8,018 2,823 leading to future ASIC sales or royalties Gross Profit 5,047 2,057
Slide 11: Balance Sheet
Balance Sheet Year End May 31 - £'000 FY 2022 FY 2021 Intangible assets 8,576 6,506 • Ongoing investment in capitalised development costs (intangible assets) Tangible assets 382 262 Non-current assets 8,958 6,768 and fixed asset capability Inventories 215 30 • £2.2m additions i
Slide 12: Cash Flow
Cash Flow Year End May 31 - £'000 FY 2022 FY 2021 Profit/(loss) for the year 149 (2,075) • Ongoing investment in capitalised development costs (intangible Adjustments for non cash items: 309 1,979 assets) Op. cashflow pre movements in W.Cap 458 (96) • £2.2m in FY2022 (£1.7m in FY2021) Working cap
Slide 13: Key growth initiatives
Key growth initiatives • Leverage EnSilica’s strong positions within automotive, industrial, healthcare and satellite connectivity applications for mixed signal ASICs • Scale the Company’s successful Fabless ASIC Model to fully exploit revenue opportunities from design and supply engagements • Devel
Slide 14: Further development of global sales network
Further development of global sales network • Appointment of a Vice President of Worldwide Sales, Peter Jeutter, based in Germany (EnSilica GmbH) • Signed sales representative agreements with Quantum Leap Solutions and Cedar Technologies: • QLS, based in Silicon Valley and has sales offices across N
Slide 15: Won a significant ASIC contract with major Industrial OEM
Won a significant ASIC contract with major Industrial OEM Awarded in July 2022 • EnSilica to design & supply an ASIC for industrial and factory automation products for a leading European OEM • Value based on projected volumes by the customer, the contract expected to be worth in excess of US$30 mill
Slide 16: Expanding capabilities and IP exposure
Expanding capabilities and IP exposure Extends core capabilities across the satellite and 5G markets • Recruited a team of skilled engineers, and purchased related non-core IP assets from Blu Wireless Technologies for implementing advanced node system-on-chips (SoCs) • This team is located in EnSili
Slide 17: Outlook
Outlook Strong FY 22 performance underpinning FY23 momentum • Having successfully delivered our FY22 results ahead of market expectations, the Company has reported strong progress in FY23 • The strong 2022 performance underpins FY23 momentum supported by existing contracts and ongoing new business m
Slide 18: APPENDIX
APPENDIX 18
Slide 19: What is an ASIC?
What is an ASIC? An application-specific integrated circuit (“ASIC”) is a custom chip that has a wide range of applications and benefits DIFFERENTIATORS MAIN APPLICATIONS OEMS USING ASICS • Lower-power consumption • Automotive • Google • Square • Smaller form-factor • Connectivity for LEO satellite
Slide 20: A brief history of EnSilica
Awards A brief history of EnSilica Fabless semiconductor model adopted Moved HQ to Supported growth of Oxford; EnSilica founded as a acquired Established front-end digital Imagination Tech Acquired Oxford Sheffield mixed EnSilica design services Dialog Semi Established mixed signal AIM IPO signal te
Slide 21: The Board of Directors
The Board of Directors Ian Lankshear Matthew Wethey Mark Hodgkins Janet Collyer David Tilston Noel Hurley Wasim Ahmed Chief Executive Officer Chief Financial Officer Chairman Senior Independent and Non-executive Director Non-executive Director Non-executive Director Non-executive Director • Co-found
Slide 22: Established and proven revenue model
Established and proven revenue model The Group has two revenue streams each having 2 components: DESIGNAUTOMOTIVE & SUPPLY (TURNKEY) - FABLESS ASIC MODEL REVENUE: Non-recurring Customer contributes to the initial design and tooling (NRE) engineering costs For ASSP development, the NRE is self-fu
Slide 23: Competitive landscape for mixed signal ASICs
Competitive landscape for mixed signal ASICs Category Competitors EnSilica • Indie Semi • AnSem Fabless (mixed • ICSense Our IP & technology focus provide us with a competitive edge. We only pursue the signal ASIC) • Swindon Silicon opportunities aligned to our skills companies Systems • Triad Semic
Slide 24: Income Statement
Income Statement Year End May 31 - £'000 FY 2019 FY 2020 FY 2021 FY 2022 Turnover 6,270 6,452 8,607 15,293 • NRE represents customer-funded developments leading to future Consultancy & IP Licensing 4,348 5,508 5,784 7,275 ASIC sales or royalties Design & Supply 1,922 944 2,823 8,018 • Higher revenue
Slide 25: Balance Sheet
Balance Sheet Year End May 31 - £'000 FY 2019 FY 2020 FY 2021 HF 2022 Intangible assets 4,086 6,844 6,506 8,576 • Ongoing investment in fixed asset capability and intellectual property Tangible assets Investments 319 - 275 - 262 - 382 - • Impairment in 2020 and 2021 following review Non-current asse
Slide 26: Cash Flow
Cash Flow • Ongoing investment in fixed asset capability and intellectual property • Impairment in 2020 and 2021 following review • Net cash position as of 31 May 2022 was £0.58m • £5.7m cash • £2.9m unsecured loan from Capel (BNP) • £2.1m Coronavirus Business Interruption Loan from Boost & Co 26
Slide 27: Cash Flow
Cash Flow • Ongoing investment in capitalised development costs (intangible assets) • £2.2m in FY2022 (£1.7m in FY2021) • IPO proceeds of £6.2m • Payments relating to loans and leases • £1.5m in FY2022 (£1.1m in FY2021) • Receipt of bank loan in FY2021 • £2.45m for CBIL from Boost & Co taken out in
Slide 28: Our investment case
Our investment case 1. Delivered strong financial and operational progress since IPO 2. Successfully engaging across automotive, industrial, healthcare and satellite communications sectors 3. EnSilica’s proven ASIC supply model now scaling at pace underpinned by IP and project revenues 4. Experience
Slide 29: Thank you – Q & A
Thank you – Q & A 29