Neonode Inc. · NASDAQ:NEON
Neonode — Q3 2020 Earnings Presentation
39 slides from Neonode's earnings presentation, Nov 10, 2020
Slide 1: Neonode Inc. Third Quarter 2020 Presentation
Neonode Inc. Third Quarter 2020 Presentation Dr. Urban Forssell, CEO Ms. Maria Ek, CFO Mr. David Brunton, Head of Investor Relations November 10, 2020
Slide 2: Disclaimer
2 Disclaimer This presentation contains, and related oral and written statements of Neonode Inc. (“Neonode” or the “Company”) and its management may contain, forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 . Forward - looking statements include i
Slide 3: Strategy and Business Update
3 Strategy and Business Update
Slide 4: Business Areas
4 Remote Sensing Solutions • Sales of software solutions for driver and in - cabin monitoring • Focuses on OEM and Tier 1 customers in Automotive HMI Solutions • Sales of customized engineering solutions for touch and gesture sensing • Focuses on customers in Military & Avionics and Industrial segme
Slide 5: Technologies and Application Areas
5 Technologies and Application Areas Our IR - based zForce ® technology supports: • Touch Sensing Applications • Touch on displays • Touch on other surfaces • Gesture Sensing Applications • Contactless touch • Gesture control • Proximity sensing Our software platform MultiSensing ® supports: • Drive
Slide 6: Business Area – HMI Solutions
6 Business Area – HMI Solutions Focuses on customized optical touch and gesture control solutions for demanding customers in the Military & Avionics and Industrial segments using our patented IR - based zForce technology.
Slide 7: Business Concept
7 Business Concept • IR - based touch and gesture sensing solutions • 100% bespoke solutions adapted for each customer’s specific needs • Scalable custom solutions to fit any touch area and size • Develop jointly with the customer focusing on a consultative, long - term relationship approach • Works
Slide 8: Touch Sensing: Touch on Displays or Other Surfaces
8 Touch Sensing Touch on Displays or Other Surfaces When conventional touch technologies fall short • Robust operation – ideal for demanding environments • High performance – low latency and high scanning speed • Optimal image quality – no overlay required
Slide 9: zForce Technology Platforms
9 zForce Blocking Technology • Display solution • Four - sided sensor arrangement • Objects positioned by detecting blocked IR light beams zForce Technology Platforms Neonode’s IR - based zForce technology comes in two main variants: zForce Reflective Technology • Display, surface or in - air soluti
Slide 10: Market and Segmentation: Military & Avionics, Industrial
10 Printing Automotive Market and Segmentation Military & Avionics Industrial Misc . Defense (1/3 of total volume ) Civil (2/3 of total volume ) Medical Transportation White goods Marine OUTDOOR - Harsh environments (dust, light , humidity ) INDOOR - Smart building (access and security ) elevators,
Slide 11: Market Information
11 Market Information* Total A vail able M arket (2020): • Industrial display market: $5,4 5 B • Military & Avionics market: $1,78B CAGR: • Industrial market : 5.9% • Military & Avionics market : 4 . 3% Industrial Display Market: • Manufacturing • Mining & Metals • Chemical, Oil, and Gas • Energy &
Slide 12: Business Area – HMI Products
12 Business Area – HMI Products Focuses on sales of Neonode’s innovative, plug - and - play sensor modules, using our reflective IR - based zForce technology that enable contactless touch, touch, and gesture sensing applications.
Slide 13: Technology at a Glance and Business Concept
13 x IR - based touch and gesture sensing technology x No need for overlays that compromises image quality x Works with any input x High scanning frequency x Enable the use of any material as a touch surface x Enable replacement of mechanical switches and controls x Allows for contactless operation,
Slide 14: Gesture Sensing: Contactless Touch and Gesture Control
14 Gesture Sensing Contactless Touch and Gesture Control The new normal for public interaction • High degree of design freedom – holographic touch or in - air touch with multiple configurations • Germ - free – preventing the spread of germs in public environments • Fast and simple integration – Neon
Slide 15: Sensor Modules Product Overview
15 Sensor Modules Product Overview 115mm 346mm Nine different lengths: Two main variants :
Slide 16: Contactless Touch: Two Ways to Go
16 Contactless Touch Two Ways to Go! Parallel Plane Configuration: Touch interaction area hovering above (or in front of) the display. Holographic Configuration: Touch interaction on an in - air display.
Slide 17: Market and Segmentation: Interactive Kiosks, Elevators
17 Medical Office Equipment Market and Segmentation Interactive Kiosks Elevators Others Vending Machines Quick Service Restaurant PoS Transportation White goods Other Major OEMs Control Panel/ Button Suppliers TAM: Installed Base 39 Mu, 9.1% CAGR 2027* TAM: Installed Base 17 Mu, 4.5% CAGR 2026* O P
Slide 18: Interactive Kiosks Market
18 Interactive Kiosks Market* * See sources on page 38 * * Based on number of commercial airports (17,678), 80% of airports have self check - in kiosks and assume 50 kiosks per airport in average. 6. Self checkout 5. Self Check - in 4. ATMs 3. Quick Service Restaurants 2. Automatic Coffee Dispensing
Slide 19: Elevators Market
19 Elevators Market* • Three distinctive categories of players: 1. OEMs; limited number of large global corporations based in North America, Europe and East Asia 2. Control/button panel providers; medium - sized regional players 3. Maintenance & Repairs; large number of local companies where US stan
Slide 20: Partner Network
20 Partner Network Distributors Value - added Resellers Other Partners
Slide 21: Success Stories – Elevators
21 Hong Kong Productivity Council Elevator retrofit solution developed and sold by Neonode’s Hong Kong - based partner, HKPC. Success Stories – Elevators Finetek Elevator solutions developed , manufactured and sold by Neonode’s Korean parter, Finetek . Contactless elevator control panels powered by
Slide 22: Success Stories – Airport Kiosks
22 Japan Airlines Retrofit solution developed and implemented at Tokyo’s Haneda airport by Neonode’s Japanese partner Japan Aerospace. Success Stories – Airport Kiosks Changi Airport Group Retrofit solution called happyhover Ρ developed and implemented by Neonode’s Singapore - based parter Arctan An
Slide 23: HMI Products and HMI Solutions – Separate Focus, Many Synergies
23 HMI Products and HMI Solutions – Separate Focii , Many Synergies HMI Solutions VP Jonas Wærn Military & Avionics Industrial Other , misc . HMI Products VP Johan Swartz Elevators Interactive Kiosks Other , misc . Product ideas Partners Technology • Sales of standardized products • Many customers •
Slide 24: Business Area – Remote Sensing Solutions
24 Business Area – Remote Sensing Solutions Focuses on driver and in - cabin monitoring in vehicles . Addressing the need for robust, cost - effective driver and in - cabin monitoring systems that enable OEMs to be compliant with the new EU general safety regulations (GSR) and meet the Euro NCAP gui
Slide 25: Business Concept
25 Business Concept • Business area focusing on camera and AI based driver and in - cabin monitoring . • Offers custom software applications adapted for each customer’s specific needs. Neonode’s Technology at a Glance: x Scalable AI software platform for driver and cabin monitoring x M onitors the d
Slide 26: MultiSensing
26 • Scalable – Fits many different applications and supports different features and performance levels • Hardware agnostic – The software can be integrated and run on different processor units and use different types of input signals • Low computational footprint – Supports low - cost system design
Slide 27: Market Drivers: Driver and In-Cabin Monitoring
27 Market Drivers Driver and In - Cabin Monitoring Safety features (examples): • Driver distraction • Driver drowsiness • Hands on steering wheel • Advanced occupancy monitoring • Child left behind • Seatbelt use and position Comfort features (examples): • Autonomous driving • Automatic seat, seatbe
Slide 28: The Technology Explained
28 The Technology Explained MultiSensing is a proprietary software platform for driver and in - cabin monitoring. MultiSensing realizes some of Neonode Dz s key proprietary innovations such as: • Rule - based decision algorithms • Extremely resource efficient machine learning MultiSensing is accompan
Slide 29: How We Differentiate from Competition
29 How We Differentiate from Competition Data Recording Data Labeling Training Inference x Short Development Cycles x Excellent change management (Inclusively short cycles for changing / adding features) x Better planning and estimatation of future development efforts x Low computational footprint x
Slide 30: Financial Update Third Quarter 2020
30 Financial Update Third Quarter 2020
Slide 31: Q3 2020 Summary
31 Q3 2020 Summary • Revenues of $1.5M compared to $1.3M in Q3 2019 • Increase driven by product sales • Operating expenses of $3.0M compared to $2.4M in Q3 2019 • Operating expenses includes one - time costs • Operating loss $1.7M compared to $1.2M loss in Q3 2019 (Operating loss flat excluding lit
Slide 32: Q3 2020 Revenues
32 Q3 2020 Revenues HMI Solutions business area • $1.2M license revenues from the solutions business, both in Q3 2020 and 2019 • Majority of revenues still from consumer electronics but increase in automotive • License customers shipped 1.7 million products during Q3 2020, accumulated >77 million si
Slide 33: Q3 Operating Expenses and Result
33 Q3 Operating Expenses and Result • Operating expenses increased by 25% compared to Q3 2019 • Operating expenses down by 2% excluding one - time costs • Lower staff expenses and travelling • Operating loss increased by 47% Q3 2020 compared to 2019 • Operating loss down 8% excluding one - time cost
Slide 34: Cash
34 Cash • Net cash used in operating activities during Q3 2020 increased by $0.4M compared to same period last year due to increase in net loss • Cash and accounts receivables of $13.3M per end of September • Still sufficient cash to execute on the business plan -2000 -1800 -1600 -1400 -1200 -1000 -
Slide 35: Highlights
35 Highlights • Our zForce technology – patent protected – is an enabling technology ideally positioned to solve for a lifestyle shift to contactless touch solutions brought on by COVID - 19 • High demand for contactless touch solutions – enormous market opportunity to integrate Neonode technology i
Slide 36: Appendices
Appendices ®@neonode’ Copyright Ne Nasdaq (NEON)
Slide 37: Sources to Market Intelligence – Industrial and Military & Avionics
37 Sources to Market Intelligence on Pp. 10 - 11 Industrial and Military & Avionics https://www.prnewswire.com/news - releases/industrial - display - market - size - worth - 726 - billion - by - 2025 -- cagr - 6 - grand - view - research - in c - 643682123.html https://www.researchandmarkets.com/rep
Slide 38: Sources to Market Intelligence – Elevators
38 Sources to Market Intelligence on Pp. 17 - 19 Elevators https://www.statista.com/statistics/281177/net - sales - of - otis/ https://www.marketscreener.com/quote/stock/HYUNDAI - ELEVATOR - CO - LTD - 20699232/financials/ https://www.mitsubishielectric.com/en/investors/highlights/segment/index.html
Slide 39: Thank You
Thank You info@neonode.com neonode.com