Slide 1: 3Q 2021 Earnings Call
3Q 2021 Earnings Call November 10, 2021
Slide 2: Today's Presenters
Today’s Presenters Ur ban Forssell CEO Fr edr ik Ni h lén CFO Dav id B ru nt o n Head of Investor Relations 2021 - 11 - 09 2 © Neonode 2001 - 2021 · www.neonode.com · Nasdaq (NEON)
Slide 3: Legal Disclaimer
Legal Disclaimer 2021 - 11 - 09 3 © Neonode 2001 - 2021 · www.neonode.com · Nasdaq (NEON) This presentation contains, and related oral and written statements of Neonode Inc. (the “Company”) and its management may contain, forward - looking statements within the meaning of the Private Securities Liti
Slide 4: Highlights in Today's Presentation
Highlights in Today’s Presentation 2021 - 11 - 09 4 © Neonode 2001 - 2021 · www.neonode.com · Nasdaq (NEON) • COVID - 19 continues to bring on challenges for our sales and business development • 3Q sales slow, but YTD revenues show strong growth YoY • Very interesting sales pipeline • Well positione
Slide 5: Business and Strategy Update (agenda)
4 3Q Financials Update 5 Q&A Concluding Remarks 2 Registered Direct Offering 3 Business and Strategy Update 1 2021 - 11 - 09 5 © Neonode 2001 - 2021 · www.neonode.com · Nasdaq (NEON)
Slide 6: 3Q 2021 Financial Update – Revenues
3Q 2021 Financial Update – Revenues YTD REVENUE TOTAL $4.3 million 23% YoY YTD REVENUE PRODUCTS $0.8 million 88% YoY 0 200 400 600 800 1 000 1 200 1 400 A M E R A P A C EM E A A M E R A P A C EM E A A M E R A P A C EM E A A M E R APAC EM E A A M E R A P A C EM E A A M E R A P A C E M E A A M E R APA
Slide 7: 3Q 2021 Financial Update – Operating Expenses
Q3 OPERATING EXPENSES $2.7 million 12% YoY 3Q 2021 Financial Update – Operating Expenses - 3 0 0 0 - 3 5 0 0 - 4 0 0 0 2021 - 11 - 09 7 © Neonode 2001 - 2021 · www.neonode.com · Nasdaq (NEON) - 2 5 0 0 - 2 0 0 0 - 1 5 00 - 1 0 0 0 - 500 0 T h o us a nd s Operating Expenses Q1 - 19 Q2 - 19 Q3 - 19 Q4
Slide 8: 3Q 2021 Financial Update – Gross Profit/Margin
YTD GROSS MARGIN PRODUCTS 31% 0pp YoY YTD GROSS MARGIN TOTAL 86% 4pp YoY 3Q 2021 Financial Update – Gross Profit/Margin 0% 20% 40% 60% 80% 100% 120% 0 500 1 000 1 500 2 000 2 500 Q 1 - 19 Q 1 - 21 Q 2 - 21 Q 3 - 21 T h o us a nd s Gross Profit/Margin Total Q2 - 19 Q3 - 19 Q4 - 19 Q1 - 20 Q2 - 20 Q3
Slide 9: 3Q 2021 Financial Update – Cash
3Q 2021 Financial Update – Cash Q3 NET CASH BURN OPERATING ACTIVITES $1.6 million 12% YoY CASH AND ACCOUNTS R E C E I V ABL E S $6.3 million $6.0 million YTD - 25 0 0 2021 - 11 - 09 9 © Neonode 2001 - 2021 · www.neonode.com · Nasdaq (NEON) - 20 0 0 - 15 0 0 - 10 0 0 - 500 0 Thousands Net cash used i
Slide 10: Registered Direct Offering (agenda)
2 4 1 3Q Financials Update 5 Q&A Concluding Remarks 3 Business and Strategy Update 2021 - 11 - 09 10 © Neonode 2001 - 2021 · www.neonode.com · Nasdaq (NEON) Registered Direct Offering
Slide 11: Registered Direct Offering
Registered Direct Offering • Closed on October 26, 2021 • 1,808,000 shares • $7.75 per share • Net proceeds approx. $13.1 million • Outstanding shares 13,561,217 (Nov. 10, 2021) Create greater awareness and drive demand for contactless touch and Neonode’s TSM Supporting the expected growth of the Co
Slide 12: Business and Strategy Update (agenda)
4 1 3Q Financials Update 5 Q&A Concluding Remarks 2 Registered Direct Offering 3 Business and Strategy Update 2021 - 11 - 09 12 © Neonode 2001 - 2021 · www.neonode.com · Nasdaq (NEON)
Slide 13: Vision: To transform the way humans interact with machines
Vision: To transform the way humans interact with machines 2021 - 11 - 09 13 © Neonode 2001 - 2021 · www.neonode.com · Nasdaq (NEON)
Slide 14: Technology Platforms and Application Areas
Technology Platforms and Application Areas 2021 - 11 - 09 14 © Neonode 2001 - 2021 · www.neonode.com · Nasdaq (NEON) Neonode’s IR - based zForce ® technology supports: • Touch sensing applications • Touch on displays • Touch on other surfaces • Gesture sensing applications • Contactless touch • Gest
Slide 15: What is Contactless Touch?
2021 - 11 - 09 15 What is Contactless Touch? Contactless, but “touch - like”, interaction w L it o h d r is e pl m ays, k i e p yp s a u ds m , butt d on o s a l n o d r sit holographic images. With our Touch Sensor Modules natural, easy - to - use contactless touch features can be created in a simp
Slide 16: Why Contactless Touch?
Why Contactless Touch? Lorem ”80% of customers see touchscreens as an infection risk, no matter how often they are cleaned” Survey by Foolproof ipsum dolor sit eonode 2001 - 2021eonode 2001 - 2021 · www.neonode.com · Nasdaq (NEON)· www.neonode.com · Nasdaq (NEON) 2021 - 11 - 09 16 © N eonode 2001 -
Slide 17: Contactless Touch Application Areas
Contactless Touch Application Areas Sel f - service kiosks POS terminals V end in g machines Elevators Medical systems Information displays 2021 - 11 - 09 17 © Neonode 2001 - 2021 · www.neonode.com · Nasdaq (NEON)
Slide 18: Contactless Touch Using Neonode Touch Sensor Modules
Contactless Touch Using Neonode Touch Sensor Modules Key Benefits • Cost effective • Easy to implement • Ideal for both retrofit solutions and new designs • Fast response time • High precision • Allows for advanced multi - finger interactions 2021 - 11 - 09 18 © Neonode 2001 - 2021 · www.neonode.com
Slide 19: Elevator Control Panels (Dewhurst)
x Leading supplier of components to the global elevator market x Contactless elevator control panel for existing or new elevator installations x Powered by Neonode Touch Sensor Modules x Marketed and sold as HALO in Europe and beyond from 2021 DEWHURST 2021 - 11 - 09 19 © Neonode 2001 - 2021 · www.n
Slide 20: Elevator Control Panels (Jardine Schindler)
x Contactless (parallel plane) elevator control panels for retrofit powered by Neonode Touch Sensor Modules x Schindler in Hong Kong (Jardine Schindler) licenses HKPC’s ‘kNOw Touch Contactless Elevator Control Panel’ for implementation in Schindler elevators in overseas markets x Deployed in many lo
Slide 21: HAPPYMETER Airport Kiosks
HAPPYMETER 2021 - 11 - 09 21 © Neonode 2001 - 2021 · www.neonode.com · Nasdaq (NEON) Airport Kiosks x Contactless self - check in and self - service bag drop terminals for retrofit x Powered by Neonode Touch Sensor Modules x Retrofit solutions installed at Changi Airport (Singapore) and Hamad Intern
Slide 22: HAPPYMETER Hospital Kiosks
HAPPYMETER 2021 - 11 - 09 22 © Neonode 2001 - 2021 · www.neonode.com · Nasdaq (NEON) Hospital Kiosks x Contactless (parallel plane) self - service kiosks for retrofit in healthcare environments x Powered by Neonode Touch Sensor Modules x Self - registration kiosk trials at NUHS in Singapore during s
Slide 23: Why Neonode?
Wh y Ne ono e? ( h o v eri n g ) * - Requires hovering within 2mm of screen. Requires replacing touchscreen display or button panel. Solution Feature Neonode Contactless Touch IR touch frame Projected capacitive Cameras I n teraction v ia m o b ile p h o n e Voice activation Foot pedals Intuitive UI
Slide 24: Elevator Market
Elevator Market Large installed base and interesting growth rate: TAM: ~19 million units* CAGR (2021 - 2024): 5.2%* Both retrofit and new equipment opportunities Global Installed Base ~19 million units Global New Equipment Market ~1 million units SE Asia, India, Australia RoW SA NA China EMEA China
Slide 25: Interactive Kiosk Market
Interactive Kiosk Market A la r ge a d d r e s s able mark e t with multi p le sub - segments on the rise, such as: • QSR S elf - O r d e r ing K io s ks | 40% C A GR * • Sel f C heckout K io s ks | 18% C A GR * • Air p ort K iosks | 11% CAG R * * F o r eca s t p e r i o d f r o m 2021 to 2024; s ee
Slide 26: Addressable Market
Glo b a l M a r k et* (Units) Elevators Self - Ser v ice Kiosks Vending Ma c hines 19,000,000 5,000,000 15,000,000 A vg. Sa les Pr i ce** (Est.) $40 $40 $40 Potential Revenue $760,000,000 $200,000,000 $600,000,000 A vg. G r oss** M a rgin (Est.) 35% 35% 35% Potent i a l Gross Profit $266,000,000 $70
Slide 27: Business Model with Significant Revenue Potential
Continue to offer engineering services to facilitate new licensing businesses and to support and drive product sales License R e v en ue s Product R e v en u e s NRE Revenues N o w N e x t Futu r e Existing business with more than a dozen customers, mainly printer manufacturers and automotive Tier 1
Slide 28: Sales Cycle and Market Potential
Sales Cycle and Market Potential Retrofits New Ins t alls R&D Highest volume End - user decision makers Shortest sales cycle Partner solutions Sales Cycle OEM d e cision m aker Medium sales cycle Engine e ring resourc e s Longest sales cycle 2021 - 11 - 09 28 © Neonode 2001 - 2021 · www.neonode.com
Slide 29: Go-To-Market Strategy
Large O E Ms Broad market customers; small tech companies, engineering firms etc . Mi d si z e O E Ms , sys tem integrators, engineering firms, and maintenance companies Large, often multi - national, corporations with volume potential >100k per year. Mid - size corporations, often with regional or
Slide 30: Several Growth Initiatives to Accelerate Further
F u tu r e Investments into market ing and sa l e s Expansion of pa r tn e r network Scaling business in key markets Expanding customer off e r ing s and incr e as ing vertical integration O u ts o u r c ing TSM production Exp a nd ing busin e ss s c op e to new market segments and further geographi
Slide 31: Q&A / Concluding Remarks (agenda)
4 1 3Q Financials Update 5 Q&A Co n clu d ing Remarks 2 Registered Direct Offering 3 Business and Strategy Update 2021 - 11 - 09 31 © Neonode 2001 - 2021 · www.neonode.com · Nasdaq (NEON)
Slide 32: Concluding Remarks
Concl u di n g Remarks 2021 - 11 - 09 32 © Neonode 2001 - 2021 · www.neonode.com · Nasdaq (NEON) • COVID - 19 continues to bring on challenges for our sales and business development o Component shortages slowing several customers’ production and sales o Strict lockdowns in several key markets create
Slide 33: Agenda
4 5 1 3Q Financials Update Q&A Concluding Remarks 2 Registered Direct Offering 3 Business and Strategy Update 2021 - 11 - 09 33 © Neonode 2001 - 2021 · www.neonode.com · Nasdaq (NEON)
Slide 34: Appendix
Ap p endix 2021 - 11 - 09 34 © Neonode 2001 - 2021 · www.neonode.com · Nasdaq (NEON)
Slide 35: References for Market Data
References for Market Data on Pp. 18 - 20 2021 - 11 - 09 35 © Neonode 2001 - 2021 · www.neonode.com · Nasdaq (NEON) El e v a t or M a r k e t: TAM: • Otis Analyst Day 2020; • KONE as an Investment. CAGR: • Otis Analyst Day 2020. Global installed base: • KONE as an Investment. Global new equipment: •
Slide 36: Thank you!
info@neonode.com neonode.com Subsc r ibe to N e onode n e w s let te r Thank you! 2021 - 11 - 09 36 © Neonode 2001 - 2021 · www.neonode.com · Nasdaq (NEON)