Vigo Photonics Spolka Akcyjna · GPW:VGO
Vigo Photonics Spolka Akcyjna — VIGO Photonics — FY2022 Earnings Presentation
30 slides from Vigo Photonics Spolka Akcyjna's earnings presentation, Apr 20, 2023
Slide 1: Financial Results for 2022 & Q4 2022
FINANCIAL RESULTS FOR 2022 & Q4 2022 April 20, 2023
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 Activity in the global infrared market: infrared An
Slide 3: Agenda
1. EXECUTIVE SUMMARY 2. SUMMARY OF 2022 & Q4 2022 AGENDA 3. FINANCIAL RESULTS FOR 2022 & Q4 2022 4. PERSPECTIVES
Slide 4: Executive Summary
EXECUTIVE SUMMARY 2022 & Q4 2022 SUMMARY Infrared detetctors • PLN 67.9 million of consolidated revenues (-5% y/y) and PLN 20.3 million in Q4 2022 (-9% y/y) despite the volatile market environment - increases in industrial, science and medicine applications, and a decrease in transport and military,
Slide 5: Summary of 2022 & Q4 2022
PHOTONICS Ze OF 2022 & Q4 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 TRL 5 TRL 6 TRL 7 Custo- Implemen- III-V 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 III-V InGaAs detectors’ market. Proto- mer Implemen- Client Product Demon- tation into concept strator ty
Slide 9: III-V Epitaxy Initiative – Semiconductor Materials
III-V EPITAXY* INITIATIVE – SEMICONDUCTOR MATERIALS 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 for photonic instruments (new VCSELs
Slide 10: Optoelectronic Systems and Photonic Integrated Circuits Initiative
OPTOELECTRONIC SYSTEMS AND PHOTONIC INTEGRATED CIRCUITS (PIC) INITIATIVE TECHNOLOGY DEVELOPMENT Objective of the initiative Achievements in Q4 2022 and Q1 2023 • Introduction, as the world's first manufacturer, of mid-infrared • Development of the component library (PDK): integrated circuits. MMI, D
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: New Cleanroom and Launch of Detection Chip Production
NEW CLEANROOM AND LAUNCH OF DETECTION CHIP PRODUCTION - SUPPORT FOR PROCESSING 2.0 2015 SIGNIFICANT INCREASE OF VIGO'S PRODUCTION CAPACITY – ENABLING THE MANUFACTURE OF UP TO 100,000 DETECTORS PER YEAR IMPLEMENTATION TIME AND SCOPE • 2021-2022 - duration of the project • April 2022 - completion of t
Slide 13: 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 4 INSTALLED REACTORS FOR THE PRODUCTION OF SEMICONDUCTOR MATERIALS • Another epitaxial reactor for the production of III-V semiconductor materials ordered and delivered • Supply agreement wi
Slide 14: Strengthening Sales in the USA Market
STRENGTHENING SALES IN THE USA 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 several activities supporting the expansion to the American market, incl.: Accelerating t
Slide 15: Support for Commercialisation Through Marketing Activities
SUPPORT FOR THE COMMERCIALISATION OF SOLUTIONS THROUGH MARKETING ACTIVITIES ENHANCED ACTIVITY AT INTERNATIONAL SCIENTIFIC CONFERENCES AND INDUSTRY FAIRS IN 2022 • Mirsens – Mid-infrared conference • SPIE Photonics West • Quantum Structure IR Photodetectors • CEM Emission Monitoring (QSIP) Conference
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 2022 & Q4 2022
FINANCIAL RESULTS FOR 2022 & Q4 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 PLN 75,4 mn 75,4 YTD order book value at the end of 68,1 +10% - increase in orders in
Slide 19: Sales Revenues
SALES REVENUES SALES REVENUES IN 2022 SALES REVENUES PER YEAR (PLN THOUSAND) • PLN 67.9 mn of consolidated sales revenues (-5% y/y) in a volatile 71 497 market environment. 67 874 • Sales of detectors and detection modules in the amount of PLN 63.7 53 451 mn (-5% y/y), and semiconductor materials PL
Slide 20: Operating Costs
OPERATING COSTS OPERATING COSTS (OPEX) IN 2022 OPERATING COSTS IN 2022 (PLN THOUSAND) • Operating costs in 2022 amounted to PLN 64.3 mn (+29% y/y). 24 478 • The greatest impact on the cost increases had the following factors: • increases of remuneration 20 003 • employee social security and benefits
Slide 21: Financial Performance
FINANCIAL PERFORMANCE FINANCIAL PERFORMANCE IN 2022 ADJUSTED EBITDA (PLN THOUSAND) AND EBITDA MARGIN • Adjusted EBITDA: PLN 14.9 mn (-45% y/y). 39% 38% 40% 46% 38% 22% 23% 27% 27 335 • EBIT: PLN 8.7 mn (-62% y/y) 24 472 17 110 • Net profit adjusted (without deferred tax): PLN 7.6 mn (-66% y/y). 14 2
Slide 22: Cash Flow
CASH FLOW CASH FLOWS IN 2022 01.01.2022 – 01.01.2021 – CASH FLOW STATEMENT [PLN THOUSAND] • Cash flow from operations: increased inventory level and reduced accounts 31.12.2022 31.12.2021 receivable Total adjustments: -3 359 -282 Amortisation and/or depreciation 9 362 6 753 • Cash flows from investi
Slide 23: Capital Expenditure
CAPITAL EXPENDITURE CAPEX IN 2022 CAPITAL EXPENDITURES INCURRED IN 2022 (PLN THOUSAND) • CAPEX in 2022 amounted to PLN 52.0 mn (accrual), of which the most 24 675 significant expenditure related to: • R&D expenditure: PLN 24.7 mn, • implementation of a new MOCVD: PLN 12.2 mn, • cleanroom constructio
Slide 24: 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 mn - the amount of n
Slide 25: Outlook
OUTLOOK
Slide 26: Further Development on a Wave of Long-Term Megatrends
FURTHER DEVELOPMENT ON A WAVE OF LONG-TERM MEGATRENDS CREATING A STRONG DRIVE FOR VIGO OPERATING DEVELOPMENT TECHNOLOGY TRENDS GEOPOLITICAL TRENDS ECOLOGICAL TRENDS SYSTEM MINIATURISATION SECURITY AND DEFENCE ROHS AND ECOLOGY Miniaturization and integration are Significant investments due to current
Slide 27: 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, SUPPORTED BY NUMEROUS MEGATRENDS MARKET
Slide 28: NICO
NICO
Slide 29: 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 30: 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