Vigo Photonics Spolka Akcyjna · GPW:VGO
Vigo Photonics Spolka Akcyjna — VIGO Photonics — Q3 2022 Earnings Presentation
29 slides from Vigo Photonics Spolka Akcyjna's earnings presentation, Nov 8, 2022
Slide 1: Financial Results for Q3 2022
FINANCIAL RESULTS FOR Q3 2022 November 8, 2022
Slide 2: VIGO in a Nutshell
VIGO IN A NUTSHELL VIGO IS A WORLD LEADER IN HIGH-TECH SOLUTIONS – 35 years of experience THE MOST ADVANCED MID-INFRARED PHOTONIC DETECTORS, DETECTION MODULES AND SEMICONDUCTOR MATERIALS and operations Headquarter in Poland and branch office in USA Operating in a fast-growing infrared market Ambitio
Slide 3: Agenda
1. EXECUTIVE SUMMARY 2. SUMMARY OF Q3 2022 AGENDA 3. FINANCIAL RESULTS FOR Q3 2022 4. PERSPECTIVES
Slide 4: Executive Summary
EXECUTIVE SUMMARY Q3 2022 SUMMARY • Stable revenues in Q3 2022 y/y despite the volatile market environment, thanks to the constantly growing mid-infrared market and demand for VIGO solutions, as well as greater sales activity on the American and Asian markets • Lower y/y operating results related to
Slide 5: Summary of Q3 2022
SUMMARY OF Q3 2022
Slide 6: MCT+ Detector Initiative
MCT+ DETECTOR INITIATIVE TECHNOLOGY DEVELOPMENT COMMERCIALISATION - SAMPLE PROJECTS Objective of the initiative TRL 8 TRL 9 TRL 5 TRL 6 TRL 7 Custo- • Exploitation of the market in its gradual fading phase by improving Proto- mer Implemen- Client Product Demon- the customisation process and explorin
Slide 7: III-V InAsSb Detectors and Detection Modules Initiative
III-V InAsSb DETECTORS AND DETECTION MODULES INITIATIVE TECHNOLOGY DEVELOPMENT COMMERCIALISATION - SAMPLE PROJECTS Objective of the initiative TRL 8 TRL 9 • Gaining the No. 1 position in the market for manufacturers of III-V TRL 5 TRL 6 TRL 7 Custo- Implemen- detectors in the MidIR range. Implement
Slide 8: III-V InGaAs Detectors and Detection Modules Initiative
III-V InGaAs DETECTORS AND DETECTION MODULES INITIATIVE TECHNOLOGY DEVELOPMENT COMMERCIALISATION - SAMPLE PROJECTS Objective of the initiative TRL 8 TRL 9 TRL 5 TRL 6 TRL 7 Custo- • Entering the market for III-V InGaAs detectors Proto- mer Implemen- Client Product Demon- tation into concept strator
Slide 9: III-V Epitaxy Initiative – Semiconductor Materials and VCSEL
III-V EPITAXY* INITIATIVE – SEMICONDUCTOR MATERIALS AND NEAR-INFRARED SOURCES (VCSEL) TECHNOLOGY DEVELOPMENT COMMERCIALISATION - SAMPLE PROJECTS Objective of the initiative TRL 8 TRL 9 • Gain visibility in the market for epitaxy services, exploring market TRL 5 TRL 6 TRL 7 Custo- Implemen- niches fo
Slide 10: Optoelectronic Systems and Photonic Integrated Circuits Initiatives
OPTOELECTRONIC SYSTEMS AND PHOTONIC INTEGRATED CIRCUITS (PIC) INITIATIVES TECHNOLOGY DEVELOPMENT Objective of the initiative Achievements in Q3 2022 • Introduction, as the world's first manufacturer, of mid-infrared • Finalisation of Ge-on-Si/2 μm technological integrated circuits. processes • Devel
Slide 11: Infrared Array Initiative
INFRARED ARRAY INITIATIVE TECHNOLOGY DEVELOPMENT COMMERCIALISATION - SAMPLE PROJECTS Objective of the initiative TRL 8 TRL 9 TRL 5 TRL 6 TRL 7 Custo- • Becoming a major supplier of detectors for the Polish Proto- mer Implemen- Client Product Demon- army/armament industry, winning customers outside P
Slide 12: Support for Commercialisation Through Marketing Activities in Q3 2022
SUPPORT FOR THE COMMERCIALISATION OF SOLUTIONS THROUGH MARKETING ACTIVITIES IN Q3 2022 ENHANCED ACTIVITY AT INTERNATIONAL SCIENTIFIC CONFERENCES AND INDUSTRY FAIRS: • Mirsens – Mid-infrared conference - MCT and III-V detectors • Quantum Structure IR Photodetectors (QSIP) Conference – scientific conf
Slide 13: Strengthening Sales in the American Market
STRENGTHENING SALES IN THE AMERICAN MARKET ENHANCED ACTIVITY IN THE USA BUSINESS ASSUMPTIONS OF THE EXPANSION TO THE USA The opening of the branch in 2022 and the commencement of direct sales to customers as well as a number of activities supporting the expansion to the American market, incl.: Accel
Slide 14: The New Reactor Will Enable Doubling of Production Capacity
THE NEW REACTOR WILL ENABLE DOUBLING OF PRODUCTION CAPACITY TEST LAUNCH OF THE NEW EPITAXIAL REACTOR VIGO HAS 3 INSTALLED REACTORS FOR THE PRODUCTION OF SEMICONDUCTOR MATERIALS, THE LARGEST OF WHICH IS A REACTOR MANUFACTURED BY AIXTRON • Another epitaxial reactor for the production of III-V AND ITS
Slide 15: New Projects Co-financed with the EU
NEW PROJECTS CO-FINANCED WITH THE EU VIGO HAS BEEN ELIGIBLE FOR FINANCING UNDER THE EUROPEAN RESEARCH AND DEVELOPMENT PROJECT SUPPORT PROGRAMS Planned NEW CO-FINANCING FOR R&D PROJECTS Amount Project title Initiative Application duration of Program of funding the project • PLN 9 mln - the amount of
Slide 16: Investments in Innovative Projects - VIGO Ventures ASI Fund
INVESTMENTS IN INNOVATIVE PROJECTS - VIGO VENTURES ASI FUND VIGO VENTURES ASI - formerly VIGO WE INNOVATION INVESTMENT ASSUMPTIONS PORTFOLIO (VWI), VIGO VENTURES • investments and development of technological Investment incubator created by VIGO Photonics and Warsaw Equity Group (50:50 joint venture
Slide 17: Financial Results for Q3 2022
FINANCIAL RESULTS FOR Q3 2022
Slide 18: Constantly Growing Order Book
CONSTANTLY GROWING ORDER BOOK VISIBLE CONTINUOUS DEVELOPMENT OF THE PHOTONICS AND MID INFRARED MARKETS AND THE GROWING DEMAND FOR VIGO PRODUCTS RECOGNIZED IN A CONSTANT GROWTH OF THE ORDER BOOK ORDER BOOK 2021 2022 67,1 mln PLN 67,1 YTD order book value at the end of October: 62,5 +20% - increase in
Slide 19: Sales Revenues
SALES REVENUES SALES REVENUES IN Q3 2022 SALES REVENUES PER YEAR (PLN THOUSAND) • Stable revenues in Q3 2022 y/y (+1%) of PLN 16.8 million despite the volatile market environment - constantly growing demand for 2 001 VIGO solutions and greater sales activity of the company on the 1 314 1 084 America
Slide 20: Operating Costs
OPERATING COSTS OPERATING COSTS IN Q3 2022 OPERATING COSTS IN Q2 2022 (PLN THOUSAND) • Core operating expenses in Q3 2022 amounted to PLN 16.2 million and increased by 46% y/y • The following factors had the greatest impact on the increase in costs: 7 841 • Increase in employment and salaries of emp
Slide 21: Financial Performance
FINANCIAL PERFORMANCE FINANCIAL PERFORMANCE IN Q3 2022 ADJUSTED EBITDA (PLN THOUSAND) AND EBITDA MARGIN • Adjusted EBITDA: PLN 3.3 million (-60% y/y). 49,6% 60,00% 14 000 12 000 43,2% 42,5% 50,00% • EBIT: PLN 1.6 million (-77% y/y), mainly due to higher sales costs 10 000 40,00% 23,0% 23,9% 8 000 19
Slide 22: Cash Flow
CASH FLOW CASH FLOWS IN Q1-Q3 2022 01.01.2022 - 01.01.2021 - CASH FLOW STATEMENT [PLN THOUSAND] 30.09.2022 30.09.2021 • Cash flow from operating activities: increased level of inventories and Total adjustments: 3 094 2 061 reduced level of receivables Amortisation and/or depreciation 6 656 5 040 Cha
Slide 23: Capital Expenditure
CAPITAL EXPENDITURE CAPEX IN Q1-Q3 2022 CAPITAL EXPENDITURES INCURRED IN Q1-Q3 2022 (PLN THOUSAND) • CAPEX in H1 2022 amounted to PLN 24.8m (accrual), of which the most significant expenditure related to: 18 826 • R&D expenditure: PLN 18.8m, • implementation of a new MOCVD: PLN 11.5m, • cleanroom co
Slide 24: Perspectives
PERSPECTIVES
Slide 25: Short-Term Outlook
SHORT-TERM OUTLOOK SHORT-TERM OUTLOOK Plan for 2022 Realization of revenues at a similar level to 2021 as a result of a globally disrupted supply chain and lower availability of components for modules (for approx. 10-20% of total production, the production of detectors without electronics and semico
Slide 26: Outlook
OUTLOOK CONTINUE TO EXECUTE THE 2023 AND 2026 STRATEGY WITH A FOCUS ON STRATEGIC INITIATIVES AND PRODUCTION EFFICIENCY BASED ON VIGO'S UNIQUE TECHNOLOGIES AND ACCELERATE COMMERCIALISATION OF NEW SOLUTIONS IN A FAST-GROWING AND FORWARD-LOOKING PHOTONIC MARKET - DEVELOPMENT STRATEGY ENABLING VIGO GROW
Slide 27: NICO
NICO
Slide 28: Thank You for Your Attention
THANK YOU FOR YOUR ATTENTION Contact for investors: Małgorzata Młynarska Investor Relations Manager, cc group e: malgorzata.mlynarska@ccgroup.pl m: +48 697 613 709
Slide 29: Legal Disclaimer
LEGAL DISCLAIMER This study has been prepared for information purposes only, contains only summary information and is not exhaustive in nature, nor is it intended to be the sole basis for any analysis or evaluation. VIGO System S.A. makes no representations (express or implied) about the information