Slide 1: Investors' Presentation for Q3 2019
INVESTORS’ PRESENTATION FOR Q3 2019 XTPL S.A. Autor: November Data: 27, 2019 xtpl.com
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Slide 3: Agenda
AGENDA EQUITY STORY 1. 2. 3. 4. 5. TECHNOLOGY APPLICATIONS VALUE MARKET COMMERCIALIZATION 6. 7. 8. 9. 10. PIPELINE EVENTS FINANCE KPIs TEAM VISION xtpl.com 3
Slide 4: Equity Story
EQUITY STORY XTPL develops the most precise printing technology in the world applicable in the rapidly growing electronics market. Global value of printed, flexible and Value of printed electronics $ 74 billion organic electronics market in 2030 market in 2018 $ 10 billion Number of application fiel
Slide 5: Technology Breakthrough
TECHNOLOGY BREAKTHROUGH XTPL’s nanoprinting method is ground-breaking. This is because of a unique combination of several features: it offers the level of precision it allows for the traditional additive method it does not require electric field, that cannot be achieved by any advantages of print –
Slide 6: Technology Precision
TECHNOLOGY PRECISION CURENT STANDARD XTPL METHOD The minimum feature size is 20 μm The minimum current feature size is 1 μm Due to the progressing miniaturization and growing complexity of devices, the market expects precision at the level of single micrometers. Such a precision cannot be provided b
Slide 7: Additive vs Subtractive Method
TECHNOLOGY ADDITIVE VS SUBTRACTIVE METHOD APPLICATION TIME AND COSTS ENVIRONMENT SUBSTRATE ADDITIVE Precise application/ simple process Effective and flexible Safe for the environment Most substrates/ even curved ones SUBTRACTIVE Removal of unnecessary material to Time and material consuming Require
Slide 8: Technology Comparison of Methods
TECHNOLOGY COMPARISON OF METHODS XTPL nanoprinting technology eliminates all the disadvantages of methods comparable in various application fields PARAMETERS INKJET EHD LCVD LITHOGRAPHY XTPL low high average very high high precision up to several tens of up to single micrometers up to several microm
Slide 9: Technology Entry Barriers
TECHNOLOGY ENTRY BARRIERS 1. 2. 3. Technology protected by The results expected by the The cost of the technology international patent market can only be achieved being copied and the risk of applications by the unique interaction failure are very high due to its between the device, the unique natur
Slide 10: Technology Protected Intellectual Property
TECHNOLOGY PROTECTED INTELLECTUAL PROPERTY XTPL’s global solution is being systematically secured by expansion of the patent cloud. The company has already submitted 10 international patent applications and declares to strongly increase this number by the end of 2020 (25 new submissions). Unique and
Slide 11: Applications Platform Character
APPLICATIONS PLATFORM CHARACTER • The global value of printed, flexible and organic electronics market amounts to $ 37.1 billion in 2019 ADVANCED ELECTRONICS • Its estimated value in 2030 is $74 billion • CAGR 2019–2030 – 6.5% Production of technologically advanced devices using STRONG MEGATREND cos
Slide 12: Value Benefits
VALUE BENEFITS XTPL technology offers unique benefits for each • maximum density of conductive structures application field: • potential for further miniaturization • cost effective and scalable process ADVANCED PCBs • increasing production yield • significant reduction of glass conversion time • im
Slide 13: Market First Targeted Markets
MARKET FIRST TARGETED MARKETS SMART GLASS DISPLAYS Application: smart glass Application: open defect repair (ODR) Size of the market: 2019 – $ 1.45 billion Size of the repair market: 2019 – $ 270.4 million Market entry strategy: Competition: Market entry strategy: Competition: Market readiness: adva
Slide 14: Market Case Study
MARKET CASE STUDY SMART GLASS DISPLAYS XTPL technology used for creating XTPL technology used for repairing invisible conductive structures for glass open defects occurring during conversion display production WYŚWIETLACZE 2 μm 5 μm from 30 to 3 min faster smart glass conversion from light to dark a
Slide 15: Market Scalability
MARKET SCALABILITY xtpl.com 15
Slide 16: Commercialization Business Model
COMMERCIALIZATION BUSINESS MODEL LICENSING • the company develops technological solution dedicated to a particular application field and license it to a partner; • on its basis, the partner builds devices that allow the technology to be used in the industry; • the company generates revenues from one
Slide 17: Commercialization Stages of the Process
COMMERCIALIZATION STAGES OF THE PROCESS TEA – Technology Evaluation Agreement – an agreement regarding testing and optimization of the technology in accordance with the partner’s specification MOU – Memorandum Of Understanding – expresses the parties’ intention to work together to achieve the agreed
Slide 18: Pipeline
PIPELINE Verified sales prospects in several Active projects with large international corporations 7 41 application fields CLIENT A CLIENT B CLIENT C CLIENT D CLIENT E CLIENT F CLIENT G Manufacturer of Smart glass Manufacturer of devices for Manufacturer of devices Manufacturer of devices devices fo
Slide 19: Selected Events: Successful Issue of Shares
EVENTS FINANCIAL DATA SELECTED SUCCESSFUL ISSUE OF SHARES • successfully completed issue of shares for PLN 10 million • share capital increase through a private placement • shares taken up both by Polish individual investors and Western institutional investors • nearly a half of the stock was acquir
Slide 20: Selected Events: Open Defect Repair
EVENTS FINANCIALCOMMERCIALIZATION SELECTED DATA – OPEN DEFECT REPAIR • identification of six leaders in the market of repairing open defects in displays: LG, Charm Engineering, V-Technology, Orbotech, HPK, Han’s Laser • the company is in talks (at various levels of progress) with five of them • a va
Slide 21: Selected Events: Smart Glass
EVENTS FINANCIALCOMMERCIALIZATION SELECTED DATA – SMART GLASS • 3rd phase of the proof-of-concept project for a leading US manufacturer from the smart glass industry • the main benefit expected to be achieved from implementation of the XTPL technology is faster smart conversion from light to dark an
Slide 22: Selected Events: Technology Licensing
EVENTS FINANCIAL DATA SELECTED TECHNOLOGY LICENSING TWO PAYMENT STREAMS to the licensor (XTPL in this case) • adoption of a licensing model as a method of commercialization of XTPL technology for open defect repair in the display market • licensing is preferred by most potential clients • the model
Slide 23: Selected Events: Extension of the Patent Cloud
EVENTS FINANCIAL DATA SELECTED EXTENSION OF THE PATENT CLOUD • at present, XTPL has 10 international applications. • the company is planning a substantial extension of the patent cloud (by the end of 2020, it intends to prepare and submit 25 new patent applications) • for deep-tech companies intelle
Slide 24: Selected Events: R&D Progress
EVENTS FINANCIAL DATA SELECTED R&D PROGRESS • given the progressing miniaturization and a simultaneous increase in the resolution of next-generation displays, manufacturers are looking for a higher precision than that offered by the traditional methods available on the market • what the market needs
Slide 25: Events After Q3: Cooperation with BOE
EVENTS AFTER WYBRANE Q3FINASOWECOOPERATION WITH BOE DANE • one of the world's leading players on the display market - BOE - interested in the breakthrough XTPL technology of ultra-precise nanoprinting • both entities signed an agreement (TEA - Technology Evaluation Agreement), launching the evaluati
Slide 26: Events After Q3: Cooperation with HPK Inc.
EVENTS AFTER Q3 COOPERATION WITH HPK INC. • XTPL and the Korean company HPK Inc., one of the main suppliers of devices for defect repair in displays for LG - one of the world’s largest manufacturers of consumer electronics - have signed a Memorandum of Understanding (MoU) • The MoU opens the path to
Slide 27: Finance: Selected Financial Data
FINANCE DANE FINASOWE WYBRANE SELECTED FINANCIAL DATA BALANCE SHEET STRUCTURE CASH FLOWS • The company finances its activity from share issues and grants • There is no interest-bearing debt in the financing structure Net cash flows from investing activities Net cash flows from operating activities N
Slide 28: Finance: Selected P&L
FINANCE DANE FINASOWE WYBRANE P&L Revenue from subsidies at a constant level. 01.01.2018 Delays in receiving of the amounts due from 01.01.2019 - 30.09.2019 – financing institutions for reasons independent 30.09.2018 WITH ESOP WITHOUT ESOP of the company. In total, funds due and not transferred in t
Slide 29: KPIs: XTPL Milestones / KPI
KPIs XTPL MILESTONES / KPI license agreement in the area of open defect repair in displays 2020 3 license agreement in the area of open defect repair in displays further application fields opened by the end of 2020; readiness to implement proof of concept projects in these areas 2 2020 Joint Develop
Slide 30: Team: Management
TEAM XTPL MILESTONES / KPI MANAGEMENT FILIP GRANEK MACIEJ ADAMCZYK WIESŁAW ROZŁUCKI MANAGEMENT BOARD MANAGEMENT BOARD CHAIRMAN OF THE PRESIDENT/ CEO MEMBER/ COO SUPERVISORY BOARD The creator of XTPL technology A manager with more than 19 Co-founder and former and the founder of the years of experien
Slide 31: Team
TEAM XTPL MILESTONES / KPI Aneta Filip Auksztol Currently over 40 people in Poland and the United States Wiatrowska BUSINESS DEVELOPMENT TECHNOLOGY TECHNOLOGY BUSINESS an interdisciplinary, well-balanced business leaders & highly skilled team with advanced knowledge & professionals who possess know-
Slide 32: Vision
VISION In the near future, we will print displays, solar cells, biosensors and other advanced elements just as cheaply and quickly as we print newspapers or books today. This is not just a vision any more. With XTPL nanoprinting technology, this is a fast approaching reality! xtpl.com 32
Slide 33: Thank You
XTPL S.A. Stabłowicka 147 54-066 Wrocław, Poland xtpl.com THANK YOU