Sivers Semiconductors Ab · OMXSTO:SIVE
Sivers Semiconductors Ab — Non-Deal Roadshow (October 2021)
63 slides from Sivers Semiconductors Ab's roadshow presentation, October 2021
Slide 1: At the heart of innovation
At the heart of innovation Company Presentation October 2021
Slide 2: Introduction Sivers Semiconductors acquisition of MixComm Inc
Introduction Sivers Semiconductors acquistion of MixComm Inc
Slide 3: Disclaimer
Disclaimer IMPORTANT INFORMATION About this Presentation We, Sivers Semiconductors AB (“Sivers Semiconductors” or the “Company”), have prepared this presentation, together with its enclosures and appendices (collectively, the “Presentation"), to provide introductory information solely for use in con
Slide 4: Background and rationale for the acquisition (I/II)
Background and rationale for the acquisition (I/II) • Sivers Semiconductors is planning to enter into a merger agreement to acquire the privately owned US company MixComm Inc (“MixComm” or the “Target”) (the “Acquisition”) • Mixcomm is a leading US mmWave product challenger in the 5G BFIC, SATCOM an
Slide 5: Background and rationale for the acquisition (II/II)
Background and rationale for the acquisition (II/II) • The acquisition price, on a cash and debt free basis, amounts to an EV of approx. SEK 1,175-1,350m (USD/SEK 8,7), where ~SEK 195m will be paid in cash and financed through a proposed private placement (the “Private Placement” or the “PP”) and SE
Slide 6: Introduction to Sivers Semiconductors' acquisition of MixComm
Introduction to Sivers Semiconductors’ acquisition of MixComm The Group Sivers Semiconductor to become #1 industry player with broadest product portfolio Locations Business areas Scotland Sweden 5G wireless Photonics (fiber) ▪ Photonics ▪ HQ & Wireless ▪ Manufacturing plant ▪ R&D, sales dep ▪ 71 emp
Slide 7: Introduction to MixComm
Introduction to MixComm MixComm at a Glance Business model ▪ MixComm is a leading US challenger in the 5G BFIC (Repeaters/Base stations), SATCOM and Radar verticals ▪ MixComm sells its products through an ecosystem of partners with new sales deriving from direct sales as UE;5% ▪ Built on 10+ years o
Slide 8: Product and technology offering
Product and technology offering mmWave: Fabless 5G BFIC SatCom Repeaters Algorithms • Family of highly integrated • Dual-pol 4-antenna multi-beam • “All-analog” repeater • Performance boosting beamformer ICs with remarkable Ka Band Satcom RX and TX algorithms that run on a output power and efficienc
Slide 9: Introduction to MixComm
Introduction to MixComm MixComm Executive Team Mike Noonen Harish Krishnaswamy, Frank Lane Arun Natarajan, PhD Jay Martin CEO PhD Co-Founder and VP of VP of RF Technology VP of Business Develop ▪ 25 years of semiconductor and Co-Founder and CTO Engineering ▪ Associate Professor in the ▪ Jay Martin i
Slide 10: Synergies from Acquisition
Synergies from Acquisition Significant synergies to strengthen market position BFIC RFICs 24-86Ghz Repeaters Modules SatCom Radar Large vendors Merging 2 leading challengers into a full- stack, full-spectrum major vendor Operational synergies Large vendor covering “all mmWave uses” Creating the main
Slide 11: Driving sustainable future with cutting edge technology
Driving sustainable future with cutting edge technology Fiber lasers 5G CPE RFIC/Modules DPD - Algorithms Lasers replacing copper cables electricity Best in class, 32 multipath modules with 50 % Software that reduce power consumption reducing power consumption with over 50% power efficiency versus c
Slide 12: The Only Company with a Complete mmWave Infrastructure Offering
The Only Company with a Complete mmWave Infrastructure Offering KA Band Licensed 5G Unlicensed 5G FWA CPE Satellite Basestations FWA CPE Repeaters Back Haul Transportation Radar Terminals (gNodeB) Hotspots Solidifying Sivers Semiconductors market position by having an offering spanning across the en
Slide 13: Strong Combined Ecosystem of Wireless and Photonics Leaders
Strong Combined Ecosystem of Wireless and Photonics Leaders 13
Slide 14: Design wins +44 – getting to volume within ~12 months
Design wins +44 – 16 getting to volume within ~12 months 2020 2021 2022 2023 Adtran (CCS) Blu Wireless Taoglas Cambium East European ODM Fujikura AirVine (US) Repeater 8Devices FWA Tier 1 Cellular Infrastructure Chinese ODM European Point to point links Cloptech US defense application ? SATCOM termi
Slide 15: Major tier 1 system telecom vendor
Major tier 1 system telecom vendor - #MixCommInside #SiversInside State-of-the-art Basestation products for licensed mmWave Customer at a glance ▪ Multi-year development engagement ▪ MixComm BFIC + Antenna Design Solution ▪ Typically, 48 BFIC or 12 AiP per Basestation ▪ Solution for 24, 28 and 39GHz
Slide 16: Base stations Chips TAM
Base stations Chips TAM Base stations in thousands Calculation based on BFIC • Each PAAM has ~50x Summit BFICs 506 Total TAM - BFIC units 2023 = $71m 2024 = $92m 385 2025 = $121m 2026= $151m 279 Total TAM in dollars = $435m Any of the major Tier 1 approx. 170 >20% over the time period ~$90m 123 91 9
Slide 17: US major communication customer
US major communication customer - #MixCommInside #SiversInside State-of-the-art Repeater technology for licensed mmWave Customer at a glance ▪ NRE development funded by US communications service provider ▪ Repeater extends mmWave coverage at much lower cost than a full Basestation ▪ MixComm Arrays w
Slide 18: 5G mmWave Repeater TAM
5G mmWave Repeater TAM Repeaters/IAB Units Calculation based on BFIC 101,233 Total TAM - BFIC units 2023 = 12,1m +38% (YoY) 76,924 2024 = 17,5m +65% 2025 = 24,1m +37% 2026= 30,2m +31% 55,892 Total TAM in dollars = $83,9m Repeater estimate is conservative 34,024 with considerable upside to 24,540 sup
Slide 19: MmWave Basestation & Repeater Chips total TAM
MmWave Basestation & Repeater Chips total TAM Basestation and Repeater Systems in Calculation based on BFIC thousands 101 • Total TAM 2023 = $83m 2024 = $109m 77 2025 = $145m 2026= $181m 56 506 Total TAM in dollars = $519m 34 385 25 279 170 123 2022 2023 2024 2025 2026 Source: Mobile Experts 3/21, V
Slide 20: Satcom customer from the UK
Satcom customer from the UK - #MixCommInside #SiversInside Well funded company with state-of-the-art SATCOM technology Customer at a glance ▪ Ka Band Chipset for revolutionary satellite ground terminal customer ▪ Tx and Rx ICs in GF 45RFSOI ▪ Development NRE so far $2m ▪ Expecting further NRE in 202
Slide 21: Synergies from Acquisition
Synergies from Acquisition Significant synergies to strengthen market position Broader customer Broader (and complementary) customer base will de-risk revenue ramp by having 44 combined design wins base Operational Leverage MixComm's strong existing GlobalFoundries partnership across the portfolio –
Slide 22: Indicative timeline for PP settlement and acquisition
Indicative timeline for PP settlement and acquisition Indicative timeline T-1 • Announcement and launch day of Private Placement T • Allocation and outcome of Private Placement and EGM notice sent T+2 • Settlement T+28 • Indicative EGM date Expected before end of • Closing of acquisition January 202
Slide 23: Strong Points Of The Merger
9 Strong Points Of The Merger Commercial and partners Technology Partners, presence, sustainability Over 44 design wins counting Best technology in BFIC and RFICs in Strong EU and US local presence and RFICs and antennas/AiP 1 separately. 16 design wins coming 1 one company covering both licensed 1
Slide 24: Expected new shareholders from MixComm in Sivers Semiconductors
Expected new shareholders from MixComm in Sivers Semiconductors Illustrative new owners expected shares % before earn out Kairos ~9% Who is Kairos Ventures Harish Krishnaswamy ~5% Frank Anton Lane ~2% Arun Natarajan ~1% Kairos invests in groundbreaking startups and research in life sciences, Michael
Slide 25: P&L – Proforma figures for Sivers Semiconductors and MixComm
P&L – Proforma figures for Sivers Semiconductors and MixComm Unaudited P&L proforma figures for NewCo Sivers H1’2021 Semiconductors MixComm1 Proforma Unaudited financial accounts Revenue 40 751 11 342 52 093 Other operating income 3 425 0 3 425 Capitalized work on own account 26 594 0 26 594 Raw mat
Slide 26: Balance sheet figures for Sivers Semiconductors and MixComm
Balance sheet figures for Sivers Semiconductors and MixComm Unaudited balance sheet figures for Sivers Semiconductors and MixComm H1’2021 Sivers Semiconductors MixComm1 H1’2021 Sivers Semiconductors MixComm1 Unaudited financial accounts Unaudited financial accounts Equity and liabilities Assets Equi
Slide 27: Sivers Semiconductors
Company Sivers Semiconductors
Slide 28: Investment highlights
28 Investment highlights 1 Rapidly expanding addressable market driven by sensors, 5G and fiber roll-out 2 Superior technology acknowledged by fortune 100 companies, with large pipeline of products soon to hit the market 3 Strong R&D heritage leading industry innovation 4 Proven go-to market strateg
Slide 29: 5G is the locomotive for the next generation of growth
29 5G is the locomotive for the next generation of growth 5G offers significantly increased data speeds… … enabling new applications & connected devices… Data Rate Number of connected devices 2019 2025E CAGR Data rate of first commercial product Theoretical peak data rate 1.6 5.5 23% Wide-area IoT 3
Slide 30: FWA growth drivers – Demand for increased data capacity
30 FWA growth drivers – Demand for increased data capacity Increasing number of FWA connections… …driving growth of 5G FWA CPE units shipped… “Old” FWA connections including 4G, 5G etc (FWA) – Source Ericsson Global 5G-Based FWA CPE Unit Shipments (millions) 71 157 46 28 25 16 19 8 8 11 3 3 5 2020 2
Slide 31: High growth in hyperscale data centers and silicon photonics market
High growth in hyperscale data centers and silicon photonics market Strong growth in hyperscale data centers Number of hyperscale data centers globally Demand driven by cloud service providers e.g. 628 Facebook, Amazon, Microsoft 570 509 448 386 338 1) Datacenter transceivers $84m to $454m (CAGR 202
Slide 32: Investment highlights
Investment highlights 1 Rapidly expanding addressable market driven by sensors, 5G and fiber roll-out 2 Superior technology acknowledged by fortune 100 companies, with large pipeline of products soon to hit the market 3 Strong R&D heritage leading industry innovation 4 Proven go-to market strategy a
Slide 33: Design wins +26 – getting to volume
Design wins +26 – getting to volume 2020 2021 2022 2023 Adtran (CCS) Blu Wireless Cambium East European ODM Fujikura AirVine (US) 8Devices FWA Ampleon Chinese ODM European Point to point links Cloptech Large CPE deal HW US defense application ? In commercialization phase EU Point to Multi Point Japa
Slide 34: New product from Cambium 24.25 - 29.50 GHz (TDD)
New product from Cambium 24.25 - 29.50 GHz (TDD) - #SiversInside Revenue: 278.5 million USD (2020) Headquarters: Rolling Meadows, Illinois, United States Number of employees: 700 34
Slide 35: Fujikura Succeeds in 60 GHz Band High-Speed Communication
Fujikura Succeeds in 60 GHz Band High-Speed Communication - #SiversInside Experiment in Safe Driving Support Demonstration Using Local Bus Headquarters: Koto City, Tokyo, Japan Number of employees: 58,422 (consolidated, 2018) Founded: March 18, 1910 35
Slide 36: FirstGroup completes trial of rail 5G gigabit
FirstGroup have successfully completed a trial of the ‘rail 5G’ gigabit #SiversInside – Partnership with Blu Wireless First Group number of employees: 103,494 (2020) The Isle of Wight has proven that the rail-5G solution is safe, reliable, durable and ready to be rolled out commercially on South Wes
Slide 37: EU - 5G rollout
EU - 5G rollout by The first live networks Allowed from 1 Jan 2020 in EU Small Cell Home unit CPE 37
Slide 38: Fujikura 2x 60 GHz products
Fujikura 2x 60 GH products #SiversInside 60 GHz mmWave Wireless Communications Module and Outdoor Evaluation Kit for unlicensed 5G V2X Communications 38
Slide 39: Airvine WaveTunnel
Arvine WaveTunnel #SiversInside Multi-award-winning startup and Wi-Fi WaveTunnel™ 60 GHz radio unit Airvine is applying cutting-edge multi-gigabit 60 GHz radio technology to usher in the all-wireless enterprise and eliminate the need for traditional CAT cabling 39
Slide 40: Photonics two Fortune 100 customers
Photonics two Fortune 100 customers Overview of the different phases of photonic product design Research phase (1-2 years) Product development phase (1-2 years) Finished product / commercialization phase ▪ Research (i.e. is it ▪ Redesign and development of prototypes ▪ Pilot lines / Pre-series possi
Slide 41: Investment highlights
Investment highlights 1 Rapidly expanding addressable market driven by sensors, 5G and fiber roll-out 2 Superior technology acknowledged by fortune 100 companies, with large pipeline of products soon to hit the market 3 Strong R&D heritage leading industry innovation 4 Proven go-to market strategy a
Slide 42: RFIC/Module R&D heritage and product launches
Sivers has a long history of product development and high in-house R&D competence 5G Wireless – Sivers has a strong R&D heritage and several successful product launches 2015 2017 June 2018 Feb 2019 Feb 2020 Aug 2020 GEN 1 GEN 1 Best industry GEN 1 GEN 2 Start GEN 2 R&D/other RFIC chip Unlicensed RFI
Slide 43: Photonics R&D
Photonics R&D Photonics – CST has a strong R&D heritage and several successful product launches 2014 2016 Feb 2017 Dec 2018 Feb 2019 Aug 2020 R&D/other milestone 1310nm (GEN 1) 1310nm (GEN 2) 1270nm (GEN 1) Sensor laser CST/IMEC Sensor laser 2 FP FTTH 2,5 Gbps Milestone DFB FTTH 2,5 Gbps Milestone D
Slide 44: Investment highlights
Investment highlights 1 Rapidly expanding addressable market driven by sensors, 5G and fiber roll-out 2 Superior technology acknowledged by fortune 100 companies, with large pipeline of products soon to hit the market 3 Strong R&D heritage leading industry innovation 4 Proven go-to market strategy a
Slide 45: 5G wireless position in the value chain
5G wireless position in the value chain Industry value chain Hardware / components OEM/ODM (examples) Data and telecom operators (examples) ▪ RFICs ▪ RF-modules ▪ Transceivers Sivers IMA sales channels Direct to customers All customers Via partners 45
Slide 46: Network with global blue chip development partners
Network with global blue chip development partners 5G ECO system – in place Partners and network Unlicensed 5G partnership in December 2016 NXP collaborate on 5G integration 5G mmWave RF development 5G partnership since January 2018 • Renesas completed transaction US$6.3 billion between RFIC and NXP
Slide 47: Photonics position in the value chain
Photonics position in the value chain Industry value chain Hardware / components Module and System vendor (examples) Sensors/Cloud service / Data centre (examples) ▪ Devices o Packaging ▪ Chips o Design and manufacturing ▪ Materials o InP; GaAs, GaN, Sbn o Wafers Also direct sales Customer examples
Slide 48: Sivers Photonics – Eco-system via members of CW-WDM MSA
Sivers Photonics – Eco-system via members of CW-WDM MSA 48 Andrew McKee, CTO, Sivers Photonics
Slide 49: Investment highlights
Investment highlights 1 Rapidly expanding addressable market driven by sensors, 5G and fiber roll-out 2 Superior technology acknowledged by fortune 100 companies, with large pipeline of products soon to hit the market 3 Strong R&D heritage leading industry innovation 4 Proven go-to market strategy a
Slide 50: Scalable business model highlighted by high gross margin level
Scalable business model highlighted by high gross margin level Gross margin at 58.3% in H1 2021 Consistent R&D pre-funding by customers SEKm SEKm 6-month period 80 (Jan-Jun 2021) 70 66.8 120 80.0% 100 96.4 96.2 60 70.0% 72.6% 80 71.5 Target gross margin 50 level: 60.0%40-60% 45.8 58.5% 58.3% 60 40 4
Slide 51: Industry characterized by attractive margin levels
Sivers as a global specialized semiconductor supplier, operates in an industry characterized by attractive margin levels Gross margin (LFY) 70% 60% 1) 50% 40% 30% 20% 10% 0% EBITDA margin (LFY) 0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50% 51 Note: H1 2020 Source: FactSet; Company financial report (Nord
Slide 52: Investment highlights
Investment highlights 1 Rapidly expanding addressable market driven by sensors, 5G and fiber roll-out 2 Superior technology acknowledged by fortune 100 companies, with large pipeline of products soon to hit the market 3 Strong R&D heritage leading industry innovation 4 Proven go-to market strategy a
Slide 53: Mix of in-house production and outsourcing enabling efficient production
Mix of in-house production and outsourcing enabling an efficient production set-up Photonics: In-house production (fab) Wireless: Outsourced (fabless) Photonics Capacity Wireless capacity ▪ In Photonics it is instrumental to have full control over ▪ Standardized production for Wireless enabling high
Slide 54: Sivers Semiconductors Summary
Sivers Semiconductors Summary • Nasdaq main list • Totaling 26 5G design-wins (+6 net for the year) • Fortune 100 customers progressing very well (SEK 25m) • $16m in cash to secure growth for 2021 • Customers getting to trials after vaccinations • Up to +20 new HC signed (+20%) starting by August •
Slide 55: Share and Owners – Jan 2016 to Sept 2021
Share and Owners – Jan 2016 to Sept 2021 Name shares Votes Erik Fällström via bolag 28 503 352 18,5% SIVE 17th Sept 2020 Share price1 SEK 28.00 Keith Halsey via bolag 12 363 144 8,0% Shares outstanding 157 745 647 Swedbank Robur Ny Teknik 10 415 000 6,7% Market cap. MSEK 4400 m June.21: Nasdaq AMF A
Slide 56: Outstanding dilutive instruments
Outstanding dilutive instruments Employee stock option programs Outstanding options Conversion Exercise price interval, SEK Maturity Dilution PO3 443,920 1:1 4.04 - 5.60 31/12/2024 0.3% PO4 1,805,000 1:1 4.70 - 9.58 30/06/2026 1.1% PO5 550,000 1:1 9.38 - 10.23 30/06/2028 0.3% PO6 2,710,000 1:1 34.78
Slide 57: Income statement
Income statement H1'21 H1'20 2020 2019 SEK thousand Revenue 40,751 44,255 96,170 96,355 Other operating income 3,425 5,823 9,099 10,259 Capitalized work on own account 26,594 17,535 37,215 43,287 Raw materials and consumables -17,001 -11,172 -26,333 -39,997 Other external expenses -42,072 -30,548 -6
Slide 58: Balance sheet
Balance sheet 30 June'21 30 June'20 31 Dec'20 31 Dec'19 ASSETS, SEK thousands Fixed assets Goodwill 134,812 134,812 134,812 134,812 Other intangible assets 164,815 138,657 147,553 131,548 Property, plant and equipment 62,285 50,910 61,372 57,739 Financial assets 118 - - - Total non-current assets 36
Slide 59: Cashflow statement
Cashflow statement H1'21 H1'20 2020 2019 SEK thousand Operating activities Operating profit/loss -53,811 -35,049 -85,710 -78,024 Adjustments for non-cash items 16,256 17,878 63,280 36,290 Interest paid -1,429 -2,660 -4,265 -3,713 Income tax received - - 9,173 10,708 Cash flow from operating activiti
Slide 60: Buzzwords
60 Buzzwords Terminology Description Industry terminology Design win A customer have chosen the companies technology to develop a product Unlicensed spectrum Spectrum does not cost anything to the user Licensed spectrum Spectrum is bought from for example PTS to be used only be Licensee mmWave RF Hi
Slide 61: Risk factors (I/II)
Risk factors (I/II) RISK FACTORS An investment in securities is associated with risk. When assessing Sivers Semiconductors’ future development, it is important to consider the risk factors associated with the Company and its shares. These include risks related to Sivers Semiconductors’ operations an
Slide 62: Risk factors (II/II)
Risk factors (II/II) Tax risks The Company is exposed to various tax risks, including risks related to transfer pricing and risks related to social security contributions associated with the Company’s share related incentive programs, and the materialization of such risks could have a material adver
Slide 63: Thank you!
Thank you! Follow us on: Webb: https://www.sivers-semiconductors.com/ Twitter: @SiversSemicond or CEO: @StormSivers
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