Vigo Photonics Spolka Akcyjna · GPW:VGO
Vigo Photonics Spolka Akcyjna — VIGO Photonics — Investor Day (June 2022)
66 slides from Vigo Photonics Spolka Akcyjna's investor day presentation, Jun 1, 2022
Slide 1: VIGO Investor Day online
VIGO INVESTOR DAY online INVESTOR PRESENTATION June 1, 2022
Slide 2: Agenda
1. ABOUT VIGO 2. MARKET ENVIRONMENT 3. TECHNOLOGY AGENDA 4. DEVELOPMENT STRATEGY 5. FINANCE 6. OUTLOOK 2
Slide 3: About VIGO
ABOUT VIGO
Slide 4: VIGO in a nutshell
VIGO IN A NUTSHELL VIGO IS A WORLD LEADER IN HIGH-TECH SOLUTIONS – 35 years of experience THE MOST ADVANCED MID-INFRARED PHOTONIC DETECTORS, DETECTION MODULES AND SEMICONDUCTOR MATERIALS and operations Headquarters in Poland and branch offices in USA and Taiwan Operating in a fast-growing Ambitious
Slide 5: Milestones of the VIGO's development
MILESTONES OF THE VIGO'S DEVELOPMENT 35 YEARS OF CONTINUOUS DEVELOPMENT AND EXPANSION ON THE MARKETS New VIGO Photonics New development brand, strategy; establishment cleanroom launch New production plant - of VIGO US New division in VIGO up to approx. 100k VIGO detectors again – Epitaxy III-V Imple
Slide 6: Modern business approach with professional staff
MODERN BUSINESS APPROACH WITH PROFESSIONAL STAFF MANAGEMENT BOARD AND KEY PERSONNEL 220 highly qualified and experienced President of the Adam Piotrowski, CEO Management Board Łukasz Piekarski, CFO experts Electronics engineer and scientist, Manager experienced in raising finance for doctor of engin
Slide 7: Global reach and exploration of new markets
GLOBAL REACH AND EXPLORATION OF NEW MARKETS INTERNATIONAL EXPANSION ALLOWS VIGO'S SOLUTIONS TO MATCH THE NEEDS OF EXISTING MARKET SPLIT 2021 AND NEW GLOBAL PLAYERS POLAND • VIGO is headquartered in Ożarów Mazowiecki, Poland 4% ASIA • VIGO is supported by subsidiaries in the USA (from 2021) and Taiwa
Slide 8: VIGO's presence on the WSE
VIGO's presence on the WSE 25 November 2014 SHAREHOLDING STRUCTURE OF VIGO SYSTEM S.A. (AT THE END OF 2021) first day of trading on WSE Warsaw Equity Management** 14,3% Józef Piotrowski SELECTED INFORMATION Investors TFI Ticker WSE VGO ~PLN 500 million 11,9% Janusz Kubrak Sector, industry Electromec
Slide 9: Implementation of a new brand: VIGO Photonics
IMPLEMENTATION OF A NEW BRAND: VIGO PHOTONICS THE DYNAMIC DEVELOPMENT OF THE COMPANY, NEW OPENING UP TO NEW TECHNOLOGIES AND THE BRAND ESTABLISHMENT OF THE FIRST VIGO SYSTEM BRANCHES IN ASIA AND NORTH AMERICA HAVE LED TO THE CREATION OF ONE GLOBAL BRAND - VIGO PHOTONICS Steps taken: • Creation of a
Slide 10: VIGO Ventures investment incubator
VIGO VENTURES INVESTMENT INCUBATOR VIGO VENTURES - VIGO WE INNOVATION (VWI) INVESTMENT ASSUMPTIONS PORTFOLIO Investment incubator created by VIGO System and Warsaw • investments and development of technological Equity Group (50:50 joint venture) in 2017 projects (start-ups, spin-offs) with global po
Slide 11: Market environment
PHOTONICS A = MARKET ENVIRONMENT GE
Slide 12: Infrared sharpens the senses of the Internet of Things – megatrends
INFRARED SHARPENS THE SENSES OF THE INTERNET OF THINGS – MEGATRENDS INTERNET OF THINGS - NEW REALITY, WHERE DEVICES FEEL, ACT, MAKE DECISIONS AND COMMUNICATE WITHOUT OUR INTERVENTION, TRANSFORMING THE MANNER IN WHICH SOCIETIES WORK! DEVELOPMENT PERSPECTIVES FOR INTERNET OF THINGS DEVICES MARKET (USD
Slide 13: Infrared as the catalyst of wearable lab-on-chip development
INFRARED AS THE CATALYST OF ‚WEARABLE LAB-ON-CHIP’ DEVELOPMENT - MEGATRENDS MARKET ‚WEARABLE LAB-ON-CHIP’ • First devices with ’lab-on-chip’ based on IR will enter the market in the next 2-3 years. • Current solutions are based on the visible spectrum and short infrared. • Development of MIR PICs wi
Slide 14: New market trends support the dynamic development of IR market
NEW MARKET TRENDS SUPPORT THE DYNAMIC DEVELOPMENT OF IR MARKET DEMAND TRENDS ECONOMIC AND TECHNOLOGICAL MEGATRENDS SYSTEM MINIATURISATION Miniaturisation and integration - the future of IR The use of IR technology in mass-market applications made possible by the development of photonic integrated ci
Slide 15: Widespread application of medium infrared in a multi-special industry
WIDESPREAD APPLICATION OF MEDIUM INFRARED IN A MULTI-SPECIAL INDUSTRY EVERY OBJECT WITH A TEMPERATURE ABOVE ABSOLUTE ZERO EMITS INFRARED RADIATION. THE WAVES THAT ARE PRODUCED CAN BE READ AND PROCESSED BY SPECIAL DEVICES DESIGNED FOR THIS PURPOSE - INFRARED RADIATION DETECTORS ARE THEIR MOST IMPORTA
Slide 16: Value of the infrared detectors market
VALUE OF THE INFRARED DETECTORS MARKET COMPETITIVE TECHNOLOGIES AND PROSPECTIVE MARKETS FOR INFRARED DETECTORS* (EXCLUDING OTHER VIGO MARKETS: LASERS AND SEMICONDUCTOR MATERIALS) Unit prices EUR NIR - near infrared SWIR - short-wave infrared MWIR - mid-wave infrared LWIR - long-wave infrared 1000 MC
Slide 17: VIGO's competitive advantages
VIGO'S COMPETITIVE ADVANTAGES KOMERCJALIZACJA ORGANISATION TECHNOLOGY COMMERCIALISATION Unique technology Expert staff - highly qualified in (parameters, sensitivity, time) interdisciplinary fields of that cannot be copied - industry technical knowledge specific - solutions not Product customisation
Slide 18: Partner for international enterprises
PARTNER FOR INTERNATIONAL ENTERPRISES COOPERATION WITH GLOBAL CORPORATIONS SUPPLIER OF HIGH-TECH COMPONENTS FOR AND THE SECURITY INDUSTRY – SELECTED CUSTOMERS THE MOST DEMANDING CUSTOMERS Safran Aerotechnics Emerson Electric Co. (smart munitions) (industrial gas analysers) Caterpillar TRUMPF (railwa
Slide 19: Technology
TECHNOLOGY
Slide 20: What is infrared (IR)? What is a detector and how does it work?
WHAT IS INFRARED (IR)? WHAT IS A DETECTOR AND HOW DOES IT WORK? OPTICAL RADIATION DIAGRAM HOW DOES A DETECTOR WORK? wavelength Visible light spectrum Infrared sensors focus the emitted radiation on one or more detectors. In the detector, the energy of the infrared radiation is converted into an elec
Slide 21: Technology and production of photonic infrared products
TECHNOLOGY AND PRODUCTION OF PHOTONIC INFRARED PRODUCTS PHOTONIC PRODUCTS AND INFRARED (IR) MATERIALS Semiconductor materials Infrared detector Infrared module Materials of crystalline structure whose An electronic component made An integrated system electrical conductivity is between up of semicond
Slide 22: VIGO products tailored to the needs of international clients
VIGO PRODUCTS TAILORED TO THE NEEDS OF INTERNATIONAL CLIENTS SIGNIFICANT DIVERSIFICATION OF VIGO'S OFFER THANKS TO INVESTMENTS IN INFRASTRUCTURE BETWEEN 2014 AND 2020 (MBE LAB, EFFICIENT MOCVD IN THE III-V EPITAXY DEPARTMENT) • Manufacture of MCT, InAs, InAsSb and InGaAs detectors, dedicated electro
Slide 23: Technological and production facilities - investments
TECHNOLOGICAL AND PRODUCTION FACILITIES - INVESTMENTS NEW PRODUCTION PLANT CAPEX – PLN 41.6 million Project completed MATERIALS FOR PHOTONICS CAPEX – PLN 21.2 million Project completed CLEANROOM – PROCESSING 2.0 CAPEX – PLN 34 million Project completed
Slide 24: Clean room completed - support for 2.0 processing
CLEAN ROOM COMPLETED - SUPPORT FOR 2.0 PROCESSING INVESTMENT OBJECTIVES 2015 1. Increase in production repeatability 2. Detector chip manufacturing technology 3. Reduction of production costs 4. Meeting the highest quality requirements (military, space, semiconductor industries) SCOPE: modernisation
Slide 25: Automation and the increase of production capacities support the growth
AUTOMATION AND THE INCREASE OF PRODUCTION CAPACITIES SUPPORT THE GROWTH INVESTMENTS IN THE DEVELOPMENT OF PRODUCTION CAPACITY DETECTORS PRODUCTION STATISTICS (IN UNITS) In 2021, the production volume of detectors increased by 46% YOY to 12.2 thousand units. 12 207 Throughout the last 5 years, VIGO S
Slide 26: The new reactor will enable the doubling of production capacity
THE NEW REACTOR WILL ENABLE THE DOUBLING OF PRODUCTION CAPACITY VIGO HAS 3 REACTORS FOR THE PRODUCTION OF SEMICONDUCTOR MATERIALS, THE LARGEST OF WHICH IS A REACTOR MANUFACTURED BY AIXTRON AND COMMISSIONED IN 2019. MBE (InAs, InAsSb) MOCVD (HgCdTe/ MCT) MOCVD (III-V) NEW EPITAXIAL REACTOR • Epitaxia
Slide 27: Development strategy
PHOTONICS A = DEVELOPMENT STRATEGY Zo
Slide 28: Sense what matters
ENABLING THE DETECTION OF ANY SUBSTANCE - VIGO 2026 Sense what matters We enable the detection of any substance in any conditions What do we do? We come up with ideas, conduct research, design and produce high quality complex detectors of exorbitant parameters How do we do that? By listening to and
Slide 29: VIGO development strategy up to 2023 and 2026
VIGO DEVELOPMENT STRATEGY UP TO 2023 AND 2026 VIGO 2026 STRATEGY - A RANGE OF BUSINESS OPPORTUNITIES TO MEET GROWTH AMBITIONS BY 2026 • New VIGO Strategy for 2021-2026 announced on 16 June 2021 400 • New business directions based on new technologies (infrared sources, optoelectronic systems and inte
Slide 30: MCT detectors and detection modules (MCT+)
MCT DETECTORS AND DETECTION MODULES (MCT+) 30
Slide 31: MCT detectors and detection modules (MCT+) - general information
MCT DETECTORS AND DETECTION MODULES (MCT+) - GENERAL INFORMATION VIGO MCT SOLUTIONS PRODUCTS APPLICATIONS - EXAMPLES Detectors and detector modules with a semiconductor MCT detector Multi-element detector Sectors layer made of MCT/ HgCdTe (mercury cadmium telluride) materials. Industrial Military an
Slide 32: MCT detectors and detection modules (MCT+) initiative
MCT DETECTORS AND DETECTION MODULES (MCT+) INITIATIVE THE MCT DETECTORS AND DETECTION MODULES INITIATIVE - KEY POINTS Conditions 400 Natural extinction of the MCT market due to ROHS. Objective of the initiative 350 Exploitation of the market in a phase of gradual reduction by 2024 by improving the c
Slide 33: MCT+ initiative – technology and commercialisation
MCT DETECTORS AND DETECTION MODULES (MCT+) INITIATIVE – TECHNOLOGY AND COMMERCIALISATION TECHNOLOGY DEVELOPMENT COMMERCIALISATION - SAMPLE PROJECTS Achievements in 2021 TRL 8 TRL 9 TRL 5 TRL 6 TRL 7 Custo- • The first products based on new technologies applied in a single Proto- mer Implemen- Client
Slide 34: III-V InAsSb detectors and detection modules
III-V InAsSb DETECTORS AND DETECTION MODULES 34
Slide 35: III-V InAsSb detectors and detection modules - general information
III-V InAsSb DETECTORS AND DETECTION MODULES - GENERAL INFORMATION VIGO InAsSb SOLUTIONS PRODUCTS APPLICATIONS - EXAMPLES Detectors and detector modules, chips with a semiconductor layer made of the following materials: InAs/InAsSb detectors Sectors InAs (indium arsenide) or InAsSb (indium arsenide
Slide 36: III-V InAsSb detectors and detection modules initiative
III-V InAsSb DETECTORS AND DETECTION MODULES INITIATIVE III-V InAsSb DETECTOR AND DETECTION MODULE INITIATIVE - KEY POINTS Conditions 400 • Divided into 3 main areas: (1) specialised detectors and modules (continued), (2) integration of mass-produced detectors with electronics (integrated circuits,
Slide 37: III-V InAsSb initiative – technology and commercialisation
III-V InAsSb DETECTORS AND DETECTION MODULES INITIATIVE – TECHNOLOGY AND COMMERCIALISATION TECHNOLOGY DEVELOPMENT COMMERCIALISATION - SAMPLE PROJECTS Achievements in 2021 TRL 8 TRL 9 • Demonstrators based on photoresistors and super grid photodiodes. TRL 5 TRL 6 TRL 7 Custo- Implemen- Client Product
Slide 38: III-V InGaAs detectors and detection modules
III-V InGaAs DETECTORS AND DETECTION MODULES 38
Slide 39: III-V InGaAs detectors and detection modules - general information
III-V InGaAs DETECTORS AND DETECTION MODULES - GENERAL INFORMATION VIGO InGaAs SOLUTIONS PRODUCTS APPLICATIONS - EXAMPLES Detectors and detector modules, chips in which the InGaAs detectors Sectors semiconductor layer is made of InGaAs (indium gallium Current Target arsenide) materials. Industry (ga
Slide 40: III-V InGaAs detectors and detection modules initiative
III-V InGaAs DETECTORS AND DETECTION MODULES INITIATIVE III-V InGaAs DETECTOR AND DETECTION MODULE INITIATIVE - KEY POINTS Conditions 400 • Leveraging megatrends related to IoT and consumer devices (measuring glucose, lactic acid, alcohol). • Exploiting synergies with the new III-V epitaxy business
Slide 41: III-V InGaAs initiative – technology and commercialisation
III-V InGaAs DETECTORS AND DETECTION MODULES INITIATIVE – TECHNOLOGY AND COMMERCIALISATION TECHNOLOGY DEVELOPMENT COMMERCIALISATION - SAMPLE PROJECTS Achievements in 2021 TRL 8 TRL 9 TRL 5 TRL 6 TRL 7 Custo- • First prototype of VIGO 1.7um InGaAs detector shipped to Proto- mer Implemen- Client Produ
Slide 42: III-V epitaxy: semiconductor materials and near-infrared sources (VCSEL)
III-V EPITAXY: SEMICONDUCTOR MATERIALS AND NEAR-INFRARED SOURCES (VCSEL) 42
Slide 43: III-V epitaxy and VCSEL - general information
III-V EPITAXY: SEMICONDUCTOR MATERIALS AND NEAR-INFRARED SOURCES (VCSEL) - GENERAL INFORMATION VIGO III-V EPITAXY SOLUTIONS PRODUCTS APPLICATIONS - EXAMPLES High-quality epitaxial structures of III-V semiconductor Sectors III-V epitaxial wafers materials (InGaAs, InAsSb) offered directly to customer
Slide 44: III-V epitaxy initiative: semiconductor materials and VCSEL
III-V EPITAXY INITIATIVE: SEMICONDUCTOR MATERIALS AND NEAR-INFRARED SOURCES (VCSEL) III-V EPITAXY INITIATIVE - KEY POINTS Conditions 400 • The foundation for all future activity. • Access to consumer markets where our production throughput is too low. • A potential technological springboard for futu
Slide 45: III-V epitaxy initiative – technology and commercialisation
III-V EPITAXY INITIATIVE: SEMICONDUCTOR MATERIALS AND NEAR-INFRARED SOURCES (VCSEL) – TECHNOLOGY AND COMMERCIALISATION TECHNOLOGY DEVELOPMENT COMMERCIALISATION - SAMPLE PROJECTS Achievements in 2021 TRL 8 TRL 9 TRL 5 TRL 6 TRL 7 Custo- • Long-Wave (LW) structure technology -VCSEL for telecommunicati
Slide 46: Mid-infrared sources (ICL, QCL, MIRL)
MID-INFRARED SOURCES (ICL, QCL, MIRL) 46
Slide 47: Mid-infrared sources (ICL, QCL, MIRL) - general information
MID-INFRARED SOURCES (ICL, QCL, MIRL) - GENERAL INFORMATION ICL, QCL, MIRLED SOLUTIONS PRODUCTS APPLICATIONS - EXAMPLES Laser or diode chips and modules that provide infrared Sectors: QCL structures radiation sources, manufactured from III-V semiconductor areas for the use of low-cost detection modu
Slide 48: Mid-infrared source (ICL, QCL, MIRLED) initiative
MID-INFRARED SOURCE (ICL, QCL, MIRLED) INITIATIVE MID-INFRARED SOURCE INITIATIVE - KEY POINTS Conditions 400 • Securing the availability of complementary components is a prerequisite for the long-term strategy. • Possible rapid growth through M&A and high synergy potential. • Alternative scenario -
Slide 49: Optoelectronic systems and photonic integrated circuits (PIC)
OPTOELECTRONIC SYSTEMS AND PHOTONIC INTEGRATED CIRCUITS (PIC) 49
Slide 50: Optoelectronic systems and PIC - general information
OPTOELECTRONIC SYSTEMS AND PHOTONIC INTEGRATED CIRCUITS (PIC) - GENERAL INFORMATION VIGO PIC SOLUTIONS PRODUCTS APPLICATIONS - EXAMPLES A miniaturised system consisting of multiple optical and Sectors PIC scheme for MIR electronic components with different functionalities Industry and transport Prot
Slide 51: Optoelectronic systems and PIC initiatives
OPTOELECTRONIC SYSTEMS AND PHOTONIC INTEGRATED CIRCUITS (PIC) INITIATIVES OPTOELECTRONIC SYSTEMS AND PICs INITIATIVE - KEY POINTS Conditions : 400 • Moving up the value stream - development of off-the-shelf sensory systems that can be integrated into mainstream devices. • The lever for development i
Slide 52: PIC initiative – technology and commercialisation
INICJATYWA SYSTEMY OPTOELEKTRONICZNE I FOTONICZNE UKŁADY SCALONE (PIC) – TECHNOLOGIA I KOMERCJALIZACJA TECHNOLOGY DEVELOPMENT R&D MIRPIC PROJECT Achievements in Q1 2022 • Goal: Development of the first mid-infrared photonic integrated • The first successful experiments have been carried out confirmi
Slide 53: Photonics integrated circuit (PIC) service stack - VIGO 2026
PHOTONICS INTEGRATED CIRCUIT (PIC) SERVICE STACK - VIGO 2026 Designing Designing tools for III-V epitaxy waveguides clients (passive elements) Designing data Microassembly and III-V processing Si/SiN/InP processing Circuit architecture microprocessors integration Detectors and Technological ASIC PIC
Slide 54: Photonic integrated circuits (PIC) – current status
PHOTONIC INTEGRATED CIRCUITS (PIC) – CURRENT STATUS
Slide 55: Infrared array
PHOTONICS INFRARED ARRAY
Slide 56: Infrared array - general information
INFRARED ARRAY - GENERAL INFORMATION ABOUT VIGO INFRARED MATRICES PRODUCTS APPLICATIONS - EXAMPLES Infrared detector arrays containing hundreds of thousands Sectors or millions of active pixels used in the construction of Military industry, the army thermal imaging cameras for space and military app
Slide 57: Infrared array initiative
INFRARED ARRAY INITIATIVE INFRARED ARRAY INITIATIVE - KEY POINTS Conditions 400 • An area linked to trends in cybersecurity, technology Polonisation and increasing the potential of the Polish army. • Programme requiring a strong public partner (PGZ or PFR). 350 Objective of the initiative Developing
Slide 58: Infrared array initiative – technology and commercialisation
INFRARED ARRAY INITIATIVE – TECHNOLOGY AND COMMERCIALISATION TECHNOLOGY DEVELOPMENT COMMERCIALISATION - SAMPLE PROJECTS Objective of the initiative TRL 8 TRL 9 TRL 5 TRL 6 TRL 7 Custo- • Becoming a major supplier of detectors for the Polish Proto- mer Implemen- Client Product Demon- army/armament in
Slide 59: Finance
FINANCE
Slide 60: Dynamic growth of results while maintaining high margins
DYNAMIC GROWTH OF RESULTS WHILE MAINTAINING HIGH MARGINS SALES REVENUES PER YEAR (PLN THOUSAND) EBIT AND EBIT PROFITABILITY OVER 2017-2021 71 497 35,9% 37,8% 4 285 30 000 34,1% 32,7% 34,6% 40,0% 25 000 30,0% 20 000 53 451 15 000 24 725 20,0% 1 909 20 231 10,0% 10 000 14 017 12 768 9 751 42 889 5 000
Slide 61: Outlook
OUTLOOK
Slide 62: Perspectives
PERSPECTIVES SHORT-TERM OUTLOOK Plan for 2022 PLN 80 million revenue, including: • Industry - growth by 20-30%, especially on the US market, in environmental applications, semiconductor industry, possible higher growth in case of positive validation of new products by customers • Transportation - gr
Slide 63: Why VIGO - summary
WHY VIGO - SUMMARY CONTINUE TO EXECUTE THE 2023 AND 2026 STRATEGY WITH A FOCUS ON PRODUCTION EFFICIENCY AND STRATEGIC INITIATIVES BASED ON VIGO'S UNIQUE TECHNOLOGIES AND ACCELERATE COMMERCIALISATION OF NEW SOLUTIONS IN A FAST-GROWING AND FORWARD-LOOKING MARKET • Operating in the fast-growing mid-inf
Slide 64: Q&A session
Q&A SESSION
Slide 65: Thank you for your attention
THANK YOU FOR YOUR ATTENTION Contact: Małgorzata Młynarska Investor Relations Manager, cc group e: malgorzata.mlynarska@ccgroup.pl m: +48 697 613 709
Slide 66: Disclaimer
DISCLAIMER This study has been prepared for information purposes only, contains only summary information and is not exhaustive in nature, nor is it intended to be the sole basis for any analysis or evaluation. VIGO System S.A. makes no representations (express or implied) about the information prese