Slide 1: Elliptic Labs Q3 Presentation
Elliptic Labs Q3 Presentation November 16, 2020 AI software empowering the next billion of devices 1
Slide 2: Disclaimer – Important Information
DISCLAIMER – IMPORTANT INFORMATION The following presentation is being made only to, and is only directed at, persons to whom such presentation may lawfully be communicated (“relevant persons”). Any person who is not a relevant person should not act or rely on this presentation or any of its content
Slide 3: Agenda
Agenda Introduction and Q3 2020 highlights Financials Summary 3
Slide 4: Q3 Highlights
Q3 HIGHLIGHTS Excellent Traction in Smartphone and Laptop Markets • Revenue NOK 7.1M,- slight improvement from 1st half • Signed contract with a new smartphone customer • Volume based revenue from previously launched smartphones • Secured a USD 3 million contract with smartphone manufacturer, not re
Slide 5: Elliptic Labs develops smart software-sensors that use AI and ultrasound
Elliptic Labs develops smart software-sensors that use AI and ultrasound to sense you and your surroundings 5
Slide 6: Sensors touch every aspect of life and drive the digital transformation
Sensors touch every aspect of life and drive the digital transformation Our vision is to build the leading software platform for all sensors, making every device smarter and more environmentally-friendly 66
Slide 7: Today we are the ultrasound leader for consumer market
Today we are the ultrasound leader for consumer market Who Global AI software company with presence in Norway, Asia and USA AI Virtual software sensors for presence, 3D gestures and heartbeat What detection for consumer and automotive markets Deployed Our in 100M+ devices Well-invested and -develope
Slide 8: We enable critical user experiences for smartphone, laptop, IoT & automotive
We enable critical user experiences for the smartphone, laptop, IoT & automotive markets Virtual Smart Sensor Platform Making Sensors More Intelligent Proximity Presence Gesture Positioning Connection Breathing Heartbeat 8
Slide 9: We have broad market opportunities
We have broad market opportunities Q3 business uptake as Asia is recovering from Covid-19 MARKETS SMARTPHONE LAPTOP SMART TV IOT AUTOMOTIVE Total market size units 1.6B 300M 400M 1B++ 100M Time of Competing Hardware Infrared Sensor Time of flight/ Radar Time of flight Sensor Radar Sensor flight/Infr
Slide 10: Smartphone market growth
Smartphone market growth New customers and longer commitments 1.6B smartphones have a proximity sensor turning screen off/on when users are making calls: • Most smartphones are using hardware sensors for proximity, that we are replacing with our smart software sensors • Customers partner with us to
Slide 11: Laptop market is next large vertical
Laptop market is next large vertical 2019 PC/Laptop CPU Market Share 2019 PC/Laptop Volumes (Revenue) (Millions of units - Mu) ~$250M Qualcomm ~$100M Other $4.7B AMD 63,9 Mu 63 Mu Other Lenovo 3 Mu Huawei 14,5 Mu $37B Intel Asus 58 Mu 44 Mu HP 14.8 Mu Dell Acer *Note that AMD does not separate reven
Slide 12: Laptop market opportunity
Laptop market opportunity Positioned to be standard provider for presence detection Laptop OEMs want presence detection on all their devices: • Our software sensors meet both the price-point and performance needed to broadly deploy presence-sensing capabilities to all tiers of a laptop manufacturer’
Slide 13: Strong partner ecosystem developed through years of networking and collaboration
Strong partner ecosystem developed through years of networking and collaboration Platform Components Software Years of dedication and networking enables Elliptic Labs to access new markets, new verticals and leverage countless opportunities 13
Slide 14: Agenda
Agenda Introduction and Q3 2020 highlights Financials Summary 14 14
Slide 15: Key Elliptic Labs KPIs per Q3
Key Elliptic Labs KPIs per Q3 # Number of granted and filed patents Cumulative number of partner-agreements 93 86 77 # Patents 70 62 43 # Of partner- (granted and 40 36 agreements filed) 38 14 general markets 34 9 41 46 50 7 28 32 4 2 2016 2017 2018 2019 Q3 2020 2016 2017 2018 2019 Q3 2020 Granted F
Slide 16: Q3 2020 P/L
Q3 2020 P/L CONSOLIDATED STATEMENT OF PROFIT OR LOSS Q3 2020 Q3 2019 YTD 2020 YTD 2019 2019 • Historical largest single size USD 3m contract Revenue 3 538 318 8 913 872 6 144 120 20 953 664 37 957 021 for SmartPhone entered into in Q3, not Other operating income 3 584 543 3 754 402 11 326 814 13 135
Slide 17: Q3 2020 Balance Sheet and Cash Flow
Q3 2020 Balance Sheet and Cash Flow CONSOLIDATED BALANCE SHEET Amounts in NOK 30.09.2020 30.09.2019 31.12.2019 ▪Balance Sheet substantially strengthened post Q3 2020 Non -current assets Deferred tax assets 62 827 614 56 705 029 56 168 887 Intangible assets 20 167 650 13 933 957 16 551 924 ▪NOK 125m
Slide 18: Clear path towards significant revenue uplift
Clear path towards significant revenue uplift • Revenue from smartphone to increase from new customers and new features to existing and new customers • Larger fixed volume contracts on units/devices – increases revenue certainty • Laptops are the largest revenue driver the coming years as: No establ
Slide 19: Shareholder Structure and Allocated Options as per November 9, 2020
Shareholder Structure and Allocated Options as per November 9, 2020 SHAREHOLDER NAME #Shares % SHAREHOLDER NAME #Shares % Passesta AS (Chairman, Tore Engebretsen) 1,194,416 12.5% Shares owned By Board Of Directors 2,087,849 21,8 % MP Pensjon Pk 898,123 9.4% Shares owned By Mgmt. And Employees 827,18
Slide 20: Agenda
Agenda Introduction and Q3 2020 highlights Financials Summary 20
Slide 21: Elliptic Labs is set to capitalize on multiple segments
Elliptic Labs is set to capitalize on multiple segments ✓ Proven business model with software sold and deployed to over 100 million devices ✓ Scalable AI software platform enabling easier support for new and current verticals ✓ Intel driving ultrasound as a standard is a game changing opportunity ✓