Elliptic Laboratories Asa · OSL:ELABS
Elliptic Laboratories Asa — Elliptic Labs — Q4 2021 Earnings Presentation
32 slides from Elliptic Laboratories Asa's earnings presentation, Mar 10, 2022
Slide 1: Q4 and Full Year 2021
Q4 and Full Year 2021 CEO Laila Danielsen CFO & IR Lars Holmøy Results presentation | March 10, 2022
Slide 2: 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, more human- and environmentally-friendly 2
Slide 3: Our AI Virtual Smart Sensor Platform makes devices intelligent
Our AI Virtual Smart Sensor PlatformTM makes devices intelligent Leveraging existing single Elliptic Labs’ purpose sensors Virtual Smart SensorsTM Microphones AI Virtual Smart Speakers Sensor Platform™ Virtual Virtual Presence Proximity Sensor Sensor Time-of-flight Software technology Touch using AI
Slide 4: Billions of devices use hardware sensor components
Billions of devices use hardware sensor components Our USD 5.5 billion market opportunity USD 1-2bn USD 1.1 – 1.8bn USD 1bn USD 1bn USD 140 – 350m Smartphones PCs, Laptops & tablets IoT IoT - Smart TVs Automotive 4
Slide 5: We are adding more capabilities while reducing cost, risk and environmental footprint
We are adding more capabilities while reducing cost, risk and environmental footprint Replacing hardware sensor components • AI Virtual Smart Sensor Platform™ can replace infrared, time-of-flight and radar PCs, Laptops sensors for presence and proximity Smartphones & tablets IoT detection − Reducing
Slide 6: Accelerated adoption of our technology, entering two new verticals in 2021
Accelerated adoption of our technology, entering two new verticals in 2021 First First First First First smartphone smartphone laptop laptop laptop PoC launched PoC agreement launched 1 2 4 10 8 17 5 2013 2016 2017 2018 2019 2020 2021 YTD 2022 First First smartphone IoT PoC & agreement agreement Ann
Slide 7: Continuing commercial scale from a strong foundation
Continuing commercial scale from a strong foundation Market enabler: Opportunities: Materialized: Partner-agreements Proof-of-Concept Contracts Models launched 48 FOUNDATION AI Virtual Smart Sensor Platform™ 24 27 47 20 18 18 14 12 107 patents 15 12 27 granted/pending 9 8 7 7 5 12 9 18 4 3 7 5 7 3 3
Slide 8: Investing in growth, strengthening our technology leadership
Investing in growth, strengthening our technology leadership Underlying technology scalable across verticals − Increasing automation − Extended chipset support Norway − Aligning roadmaps with partners − Close customer cooperation South Korea USA Japan China Taiwan Scaling the organization − Increase
Slide 9: Penetrating new markets through strong partnerships and aligned roadmaps
Penetrating new markets through strong partnerships and aligned roadmaps Smartphones PCs, Laptops & tablets IoT Laptop Market share 81% 19% 0.1% • Market expansion through • Aligned roadmaps with ~100% of • Aligned roadmaps and collaboration continued partnerships with the CPU market combined – driv
Slide 10: Solid track record of converting proof-of-concept agreements into new customers
Solid track record of converting proof-of-concept agreements into new customers Smartphones PCs, Laptops & tablets IoT 2021 laptop market volumes1 Million units 102 74 60 24 29 22 207 Other • Leading market position with • Maturing 8 Proof-of-Concept • Signed 3 Proof-of-Concept proven performance al
Slide 11: Broad deployment of the AI Virtual Smart Sensor Platform
Broad deployment of the AI Virtual Smart Sensor Platform in smartphones; PC and IoT verticals poised to grow Smartphones PCs, Laptops & tablets IoT 47 models ThinkPad T14 Bosch spexor 47 25 17 7 1 3 2016 2017 2018 2019 2020 Current1 • Precision, credibility and maturity • First software-only presenc
Slide 12: The market is dominated by non-intelligent hardware sensor components
The market is dominated by non-intelligent hardware sensor components Hardware sensor components Hardware sensors technology cost Cost per unit (USD) $ 10 - 20 • Microphone and speaker − In most devices for standard audio and voice control • Infrared Proximity Sensor: − Mature and incumbent technolo
Slide 13: Funded for continued expansion across verticals
Financial review Funded for continued expansion across verticals CFO Lars Holmøy 13
Slide 14: Strong growth trajectory
Strong growth trajectory Sales revenue development continue to grow NOK million, LTM +81% • 81% year-over-year customer revenue growth 54.6 primarily from the smartphones vertical − Total revenue and other operating income 63 mNOK 44.0 a growth of 41% 31.9 34.1 • Other income reflecting grants and s
Slide 15: Continued improved EBITDA, affected by one-off costs in Q4
Continued improved EBITDA, affected by one-off costs in Q4 Total revenue and EBITDA NOK million 63.0 • 41% Total revenue and other operating income growth in 2021 vs. 2020 44.7 − Shrinking portion of Other operating income1 • 28% EBITDA margin in Q4 2021 54.6 30.2 − Salaries and personnel cost of NO
Slide 16: Solid cash balance supported by equity raise
Solid cash balance supported by equity raise 2021 cash flow NOK million 218 • Strong liquidity position after equity raise in 2021 • Negative cash flow from operations due to − Up-listing to Oslo Stock Exchange, including external 147 consultant and audit services − Payment schedule from customers.
Slide 17: Maintaining a robust balance sheet
Maintaining a robust balance sheet Balance sheet NOK million Assets Equity & • Strong cash position of NOK 218 million at the end liabilities of 2021 371 371 37 • Equity ratio of 92.5% 70 • Interest bearing debt reflecting loans from 219 219 Innovasjon Norge1 28 343 69 218 188 100 22 46 17 11 14 17
Slide 18: Solid foundation for continued expansion across verticals
Summary and Outlook Solid foundation for continued expansion across verticals CEO Laila Danielsen 18
Slide 19: We are set to grow along multiple dimensions
We are set to grow along multiple dimensions MORE CUSTOMERS MORE VERTICALS AI Virtual Smart Sensor Platform™ AND MODELS Software technology using AI, ultrasound and sensor-fusion Sensing you and your surroundings MORE PRODUCTS 19
Slide 20: Multiple opportunities for expansion
More Virtual Multiple opportunities Smart Sensors for expansion PCs, Laptops and Tablets example applicable in all verticals More More models customers 20
Slide 21: Clear path towards significant revenue
Clear path towards significant revenue Key revenue drivers 2023 revenue target • PCs, Laptops & Tablets: First enterprise agreement signed − Positioned to be the standard Building position in the IoT market − Vertical to become the largest revenue driver • Smartphones: Established market position −
Slide 22: Q&A
Q&A Next event: Q1 2022, May 25 22
Slide 23: Investment highlights
Investment highlights Scalable AI software platform company with global customers and partners • Providing Virtual Smart Sensors that make devices smarter, more human- and environmentally-friendly • Commercial success with global tier 1 manufacturers in the smartphone, PC and IoT markets • Semicondu
Slide 24: Appendix
Appendix ellipticlabs
Slide 25: 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, more human- and environmentally-friendly Significant opportunity in prioritized markets AI Virtual Smart Sensor Platform™ Virtual
Slide 26: Wide-ranging opportunities across significant markets
Wide-ranging opportunities across significant markets Smartphones PCs, Laptops & tablets IoT Smart TVs Automotive Number of units 1.4bn 460m 2.1 bn 400m 100m x Price of Infrared Time-of-Flight / Radar Time-of-Flight/Infrared Time-of-Flight Radar alternatives USD 0.10 – 0.25 USD 2.5 – 4.0 USD 0.10 –
Slide 27: Reported financials
Reported financials Profit and loss Q4 2021 Q4 2020 2021 2020 (Amounts in 000 NOK) (Unaudited) (Unaudited) (Unaudited) (Audited) Revenues from contracts with customers 34 669 24 071 54 598 30 215 Other operating income — 3 190 8 438 14 517 Total revenue and other operating income 34 669 27 261 63 03
Slide 28: Reported financials
Reported financials Cash flow (Unaudited) (Unaudited) (Unaudited) (Audited) (Amounts in 000 NOK) Q4 2021 Q4 2020 2021 2020 Cash flow from operating activities Profit/(loss) before tax 6 805 14 028 -13 093 -15 557 Adjustment for: Taxes paid in the period -24 -39 -12 -549 Depreciation 2 096 1 368 8 31
Slide 29: Reported financials
Reported financials Balance sheet Assets Equity & liabilities 31/12/21 31/12/20 31/12/21 31/12/20 (Amounts in 000 NOK) (Unaudited) (Audited) (Amounts in 000 NOK) (Unaudited) (Audited) Non-current assets Equity and liabilities Deferred tax assets 62 534 59 807 Share capital 1 038 958 Intangible asset
Slide 30: Shareholder information
Shareholder information Top 20 shareholders as of March 3, 2022 Shares and options owned by BoD, mgmt, and employees March 3, 2022 (fully diluted) Number of shares Percent of total shares Percent of fully diluted Number of shares Passesta AS 12,280,480 11.8 % shares MP Pensjon PK 8,937,299 8.6 % Sha
Slide 31: 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 32: AI Virtual Smart Sensor Platform
AI Virtual Smart Sensor PlatformTM Laila Danielsen, CEO laila@ellipticlabs.com Lars Holmøy, CFO & Investor Relations lars.holmoy@ellipticlabs.com