Slide 1: Second quarter 2019 Earnings presentation
Second quarter 2019 Earnings presentation 16 August 2019
Slide 2: Disclaimer
Disclaimer This presentation (the "Presentation") has been produced by poLight ASA (the "Company") exclusively for information purposes. This Presentation has not been approved, reviewed or registered with any public authority or stock exchange. Further to the aforementioned, this presentation is th
Slide 3: Today's agenda
Today’s agenda Presenting Dr. Øyvind Isaksen • Key events Chief Executive Officer Dr. Isaksen has been CEO in poLight since August 2014. He has • Introduction to poLight previously held several CEO positions, most recently in the publicly listed company Q-Free ASA, which he left January 2014 after 7
Slide 4: Key events
Key events • All-time-high deliveries of TLens and ASIC drivers in the second quarter of 2019 • TLens and drivers shipped to support potential customer projects at various stages of maturity • Progress made on three projects which may lead to design-win in late 2019 or first half 2020 related to sma
Slide 5: First TLens order received for wearable PVT
First TLens order received for wearable PVT • Final testing phase before decision to launch product and award design-win/mass production • Order for 33,320 units of TLens Silver and 30,000 ASIC drivers for a specific planned product • Will also cover need for initial mass production • Follows succes
Slide 6: poLight at a glance
poLight at a glance Background and description Geographical footprint • Developer of unique photographic lens for use in the mobile, barcode, augmented reality and other Horten Norway Tampere Finland markets Lyon France Korea • Founded in 2005 and has since build state-of-the-art Shenzhen Taiwan Chi
Slide 7: poLight's technology well suited for multiple applications
poLight´s technology well suited for multiple applications Augmented Reality (AR) / Smartphone Barcode Other Wearable • Large addressable market, billions • Evolving from 1D laser to 2D • Augmented reality and wearable • New opportunities emerging and of cameras produced for the imaging barcode read
Slide 8: Operations and market review
Operations and market review
Slide 9: Seeking to expand smartphone offering to facilitate market break-through
Seeking to expand smartphone offering to facilitate market break-through • Screen-size focus continues to impact adoption of AF solutions in front camera • Developed compact camera module design concepts to minimize nose size and enable AF at minimum screen size impact • New concepts started to be p
Slide 10: Continued progress on a smartphone project
Continued progress on a smartphone project • One vendor continued evaluation of TLens for a specific smartphone project Market # customers Planning PoC Design segment bought TLens PoC Win • Shipped 4,775 TLens and 11,000 ASIC drivers for Engineering Verification Test (EVT) • Project delayed unrelate
Slide 11: Potential for diversification through multiple industrial and mass-market applications
Potential for diversification through multiple industrial and mass-market applications • Barcode # customers Market Planning Design • Five ongoing POCs with positive technical results bought eval PoC segment PoC Win kit/TLens • Two barcode vendors consider TLens for a specific product • The reminder
Slide 12: Financial review
© poLight Financial review
Slide 13: Key financials
Key financials Income statement Balance sheet summary (NOK million) Q2 2019 Q2 2018 FY 2018 (NOK million) Q2 2019 Q2 2018 FY 2018 Revenue 0.5 0.1 1.0 Intangible assets 77.0 71.9 75.8 Cost of sales -0.4 -1.0 -1.5 Cash and cash equivalents 91.4 59.8 127.4 Research and development expenses -5.6 -7.8 -2
Slide 14: Funding in place to drive TLens commercialisation
Funding in place to drive TLens commercialisation Q2 2019 cash flow development (NOK million) 107,5 0,03 91,4 • Q2 cash used in operations was NOK 14.4 million -14.4 -0,76 -0,88 • Q2 cash used in investing activities was NOK 0.8 million • Net decrease in cash of NOK 16.1 million for the quarter Cash
Slide 15: Outlook
© poLight
Slide 16: Outlook
Outlook • Steady interest from a wide range of industries and use-cases offer potential for diversified revenue base • Shipped sizeable number of units to support EVT phase for one specific smartphone project • Design concept developed for TLens integration potentially enable AF in front camera with
Slide 17: Next events
Next events: Q3-19 - 24 October 2019 Q4-19 - 14 February 2020
Slide 18: Appendix
Appendix Oy Instant focus a Small X and Y 18 a Constant field ba of view Allin focus Touch & re-Focus High performance front facing camera R=6B 4 High optical axis stability No gravity impact Low power consumption Smart implementation of dual camera IG No magnetic interference & potight
Slide 19: Management Team
Management Team Dr. Øyvind Isaksen Chief Executive Officer Dr.Isaksen has been CEO in poLight since August 2014. He has previously held several CEO positions, most recently in the publicly listed company Q-Free ASA, which he left January 2014 after 7 years as CEO. Dr. Isaksen holds a Ph.D in Applied
Slide 20: Board of Directors
Board of Directors Eivind Bergsmyr - Chairman Mr. Bergsmyr is Partner in Viking Venture since 2009. Bergsmyr was previously CEO of the Norwegian start-up Nacre AS, sold in 2007 to Sperian Protection and recognized as the Nordic Venture Exit of the Year. Prior to this, Bergsmyr acquired some extensiv
Slide 21: Interim consolidated statement of income (unaudited)
Interim consolidated statement of income (unaudited) NOK 000 Note Q2 2019 Q2 2018 YTD 2019 YTD 2018 FY 2018 Revenue 519 66 548 250 1 038 Cost of sales -382 -967 -385 -1 005 -1 488 Research and development expenses 7 -5 565 -7 793 -11 166 -16 446 -28 918 Sales and marketing expenses -1 717 -1 717 -4
Slide 22: Balance sheet (unaudited)
Balance sheet (unaudited) NOK 000 Note Q2 2019 Q2 2018 FY 2018 ASSETS Property, plant and equipment 1 206 1 804 1 605 Right-of-use assets 1 315 0 0 Intangible assets 8 77 024 71 851 75 829 Total non-current assets 79 545 73 655 77 434 Inventories 8 298 3 548 7 372 Trade and other receivables 8 364 7
Slide 23: Cash flow (unaudited)
Cash flow (unaudited) NOK 000 Note Q2 2019 Q2 2018 YTD 2019 YTD 2018 FY 2018 Operating activities Profit before tax -14 208 -15 151 -28 925 -29 561 -76 922 Non-cash adjustment to reconcile profit before tax to net cash flows: Depreciation and impairment of property, plant and equipment 393 274 1 012