Next Biometrics Group Asa · OSL:NEXT
Next Biometrics Group Asa — Q4 2018 Earnings Presentation
21 slides from Next Biometrics Group Asa's earnings presentation, 2019
Slide 1: Proven Fingerprint Sensor Technology for Advanced Authentication
Proven Fingerprint Sensor Technology for Advanced Authentication www.nextbiometrics.com 1
Slide 2: Disclaimer
Disclaimer Any statement, estimate or projection included in this presentation (or upon which any of the conclusions contained herein are based) with respect to future performance (including, without limitation, any statement, estimate or projection with respect to the condition (financial or otherw
Slide 3: Next Biometrics – Growth Path
Next Biometrics – Growth Path R&D Focus Growth Investments Accelerate Growth 2015 2016 2017 2018 2019 2020 Established Core Creating Foundation Scaling Technology for Growth the Business Created unique large Strengthened operations and R&D Ramp smart card flexible sensor solution products Leveraged
Slide 4: Financial Highlights
Financial Highlights Q4-2018 • Revenue: NOK 29.3 million compared with NOK 30.2 million in Q3-2018 • Gross margin: 36% compared with 30% in Q3-2018 FY 2018 • Revenue: growth of 10% to NOK 108.4 million • Gross margin: increase to 28% (FY 2017: -6%) www.nextbiometrics.com 4
Slide 5: Business Highlights Q4-2018
Business Highlights Q4-2018 Smart Card: • Technology Partnership with Infineon • Joint R&D Program with MK Group, Vietnam • Tactilis selected for 3 UN smart card pilots utilizing NEXT sensor technology Government ID: • Purchase order from Telpo for POS terminal solutions for the Indian market • Purc
Slide 6: Business Highlights 2019 to Date
Business Highlights 2019 to Date Smart Card: • Received and delivered purchase order for 30,000 chipsets from Tactilis • Expanding smart card ecosystem with agreements in Asia • Dual Interface sensor sampling starting in Q2-2019 Government ID: • Increased customer traction in India reflected in firm
Slide 7: Delivering on Gross Margin Improvement
Delivering on Gross Margin Improvement Gross margin Gross margin of 36% in Q4-2018 36 % 30 % • Fourth consecutive quarter with positive gross margin 26 % 19 % • Full-year gross margin of 28% (FY 2017: -6%) Drivers for margin improvement (4 %) • New ASIC Q4-17 Q1-18 Q2-18 Q3-18 Q4-18 • Improved yield
Slide 8: Key Figures for Q4 and FY 2018
Key Figures for Q4 and FY 2018 Profit and loss FY 2018: Q4 Q1 Q2 Q3 Q4 • Revenue growth of 10% NOK million 2017 2018 2018 2018 2018 2017 2018 • Gross margin of 28% (FY 2017: -6%) Revenue 24.7 23.3 25.6 30.2 29.3 98.2 108.4 COGS (25.6) (18.8) (18.9) (21.1) (18.8) (104.0) (77.6) Q4-2018: Gross profit
Slide 9: Passing Peak OPEX and R&D Investments
Passing Peak OPEX and R&D Investments R&D related vs non-R&D related OPEX* NOK million (excl. cost of options ) Non-R&D related OPEX stable 60 Non-R&D R&D R&D related OPEX reflecting high activity 50 • Focus on Smart Cards and Government ID • Projects on track for expected volume market 40 take off
Slide 10: Improved EBITDA Performance and Reduced Cash Burn
Improved EBITDA Performance and Reduced Cash Burn EBITDA ex options 20 MNOK EBITDA: 10 • Q4-2018 EBITDA-loss excl. options 0 reduced by NOK 5 million compared to -10 -20 Q4-2017 -30 (37) (35) (37) (38) (36) (32) • 5 MNOK skattefunn, included in Q4-2018 -40 (41) (41) and Q4-2017 -50 Q1-17 Q2-17 Q3-17
Slide 11: Balance Sheet & Cash Flow Development
Balance Sheet & Cash Flow Development Balance sheet Cash flow development NOK million NOK million Liabilities 31 46 Cash 180* 28 226 Receivables 29 122 Equity (22) Inventory 0 71 (3) 49 46 Non-current Cash at Operations Investing Financing Cash at Net Private Adjusted period start period end placeme
Slide 12: Leveraging NEXT’s Large Size, Cost Benefit in Four Target Markets
Leveraging NEXT’s Large Size, Cost Benefit in Four Target Markets Smart Card Government ID #1 priority Certification of existing products; Expanding sensor portfolio Notebook Access control Stay strong Leverage existing and relevant portfolio through distribution channels www.nextbiometrics.com 12
Slide 13: Focused on Smart Cards and Completing Payment Card Solution
Focused on Smart Cards and Completing Payment Card Solution Expected smart card segment inflection point Retail banking payment Estimated smart card revenue/volume development – TAM (Total addressable market) cards Government Grade / Mass market Financial inclusion payment cards Enterprise cards Gov
Slide 14: Building Payment Card Traction
Building Payment Card Traction 2018 achievements • Agreement with M-Tech Innovations to develop and deploy biometric smart card • 4 new agreements signed with tier-2 customers in APAC solutions • Technology partnership with Infineon • Contact-based and dual interface solutions for current and evolvi
Slide 15: Smart Card: Ready to Support Tactilis’ Ramp-up
Smart Card: Ready to Support Tactilis’ Ramp-up Shipped 30k chipsets in Q1-2019 • Call-off under previously received open purchase order for 250k chipsets • Over 60k sets of fingerprint sensors and ASICs shipped to date for product development, pilots and initial production Tactilis contract backlog
Slide 16: Building World-Wide Government ID Position
Building World-Wide Government ID Position INDIA RoW 2018 achievements 2018 achievements • Aadhaar L0 certification for modules, readers & software • 4 agreements won and supply started • Start of discussion with all relevant terminal vendors • Start of FAP 20 sensor sampling to customers • First PO
Slide 17: Access Control Volumes Emerging
Access Control Volumes Emerging Purchase order for NEXT STQC and UIDAI 2018 achievements certified fingerprint sensors for the Indian market • License algorithm providing easy customization, superior Sold through distribution partner AqTronics performance and faster time-to-market Technologies,
Slide 18: Notebook – Achievements & Outlook
Notebook – Achievements & Outlook 2018 achievements • Sensor and ASIC development completed and solutions in mass production • New sensor and ASIC driving gross margin improvement • Record shipments to US tier-1 customer • Initial volumes to Fujitsu in 2018, further ramp in 2019 Lead pipeline • Ongo
Slide 19: Secure Authentication for Identity Management
Secure Authentication for Identity Management 6m 1bn Founded 2004; IPO 2014 Cost-efficient Rapidly growing mass-production of fingerprint sensor market >6 million sensor large-size, rigid and >1 billion units modules shipped to-date flexible sensors Positioned for leadership Proven biometric fingerp
Slide 20: Outlook
Outlook • Increase in design wins and revenue • Volume shipment of high-end smart card sensors • Sampling of Dual Interface solution planned from Q2-19 • Expand and capitalize on network in payment smart-card ecosystem • Ramp India sales • Increased interest for FAP20 products • Significant increase
Slide 21: NEXT Biometrics
NEXT BIOMETRICS One Touch. One You. NEXT Biometrics www.nextbiometrics.com 21
NEXT Biometrics Group — Q4 2018 Earnings Presentation on 6ix