Slide 1: Q1 2022 Earnings Call
Q1 2022 Earnings Call May 11, 2022 2022 - 05 - 11 © Neonode 2001 - 2022 · www.neonode.com · Nasdaq (NEON) 1
Slide 2: Today's Presenters
Today’s Presenters 2022 - 05 - 11 © Neonode 2001 - 2022 · www.neonode.com · Nasdaq (NEON) 2 Urban Forssell CEO Fredrik Nihlén CFO
Slide 3: Legal Disclaimer
Legal Disclaimer 2022 - 05 - 11 © Neonode 2001 - 2022 · www.neonode.com · Nasdaq (NEON) 3 This presentation contains, and related oral and written statements of Neonode Inc. (the “Company”) and its management may contain, forward - looking statements within the meaning of the Private Securities Liti
Slide 4: Agenda
Agenda 2022 - 05 - 11 4 © Neonode 2001 - 2022 · www.neonode.com · Nasdaq (NEON) 1. Q1 2022 Financial Results 2. Strategy and Business Update 3. Concluding Remarks 4. Q&A Neonode Inc. Q1 2022 | May 11, 2022
Slide 5: Q1/'22 Financial Results – Revenues
Q1/’22 Financial Results – Revenues 2022 - 05 - 11 © Neonode 2001 - 2022 · www.neonode.com · Nasdaq (NEON) 5 Lorem $1.3 million Revenue Total Q1, 2022 ▼ 21 % YoY $0.1 million Revenue Products Q1, 2022 ▲ 24 % QoQ -200 0 200 400 600 800 1,000 1,200 1,400 1,600 1,800 Q1-20 Q2-20 Q3-20 Q4-20 Q1-21 Q2-21
Slide 6: Q1/'22 Financial Results – Gross Profit/Margin
Q1/’22 Financial Results – Gross Profit/Margin 2022 - 05 - 11 © Neonode 2001 - 2022 · www.neonode.com · Nasdaq (NEON) 6 62% Adjusted GM TSMs Q1, 2022 ▲ 10pp QoQ 65% GM Products Q1, 2022 ▲ 41pp YoY -250% -200% -150% -100% -50% 0% 50% 100% -200 -150 -100 -50 0 50 100 150 200 Q1-20 Q2-20 Q3-20 Q4-20 Q1
Slide 7: Q1/'22 Financial Results – Operating Expenses
Q1/’22 Financial Results – Operating Expenses 2022 - 05 - 11 © Neonode 2001 - 2022 · www.neonode.com · Nasdaq (NEON) 7 Lorem $2.6 million Operating Expenses Q1, 2022 ▼ 12 % YoY -3,500 -3,000 -2,500 -2,000 -1,500 -1,000 -500 0 Q1-20 Q2-20 Q3-20 Q4-20 Q1-21 Q2-21 Q3-21 Q4-21 Q1-22 Thousands Operating
Slide 8: Q1/'22 Financial Results – Cash
Q1/’22 Financial Results – Cash 2022 - 05 - 11 © Neonode 2001 - 2022 · www.neonode.com · Nasdaq (NEON) 8 Lorem $2.3 million Net Cash Burn Operating Activities Q1, 2022 ▼ 16% QoQ $16.3 million Cash and Accounts Receivables Mar. 31, 2022 ▼ 2,4 Million Dec. 31,2021 -3,000 -2,500 -2,000 -1,500 -1,000 -5
Slide 9: Agenda
Agenda 2022 - 05 - 11 9 © Neonode 2001 - 2022 · www.neonode.com · Nasdaq (NEON) 1. Q1 2022 Financial Results 2. Strategy and Business Update 3. Concluding Remarks 4. Q&A Neonode Inc. Q1 2022 | May 11, 2022
Slide 10: Vision: To transform the way humans interact with machines
VISION To transform the way humans interact with machines 2022 - 05 - 11 © Neonode 2001 - 2022 · www.neonode.com · Nasdaq (NEON) 10
Slide 11: Business Model – Technology Licensing and Product Sales
Business Model – Technology Licensing and Product Sales 2022 - 05 - 11 © Neonode 2001 - 2022 · www.neonode.com · Nasdaq (NEON) 11 Customer Offerings Product Sales Technology Licensing
Slide 12: Business Model – Technology Licensing and Product Sales
Business Model – Technology Licensing and Product Sales 2022 - 05 - 11 © Neonode 2001 - 2022 · www.neonode.com · Nasdaq (NEON) 12 Customer Offerings Product Sales Technology Licensing Non - Recurring Engineering Services
Slide 13: Business Model – Technology Licensing and Product Sales
Business Model – Technology Licensing and Product Sales 2022 - 05 - 11 © Neonode 2001 - 2022 · www.neonode.com · Nasdaq (NEON) 13 Customer Offerings Product Sales Technology Licensing Touch Sensor Modules zForce MultiSensing Non - Recurring Engineering Services
Slide 14: Business Model – Technology Licensing and Product Sales
Business Model – Technology Licensing and Product Sales 2022 - 05 - 11 © Neonode 2001 - 2022 · www.neonode.com · Nasdaq (NEON) 14 Customer Offerings Product Sales Technology Licensing Medical Equipment Industrial Automation Elevators Interactive Kiosks Touch Sensor Modules zForce MultiSensing Non -
Slide 15: Business Model – Technology Licensing and Product Sales
Business Model – Technology Licensing and Product Sales 2022 - 05 - 11 © Neonode 2001 - 2022 · www.neonode.com · Nasdaq (NEON) 15 Customer Offerings Product Sales Technology Licensing Printer Automotive Military & Avionics Medical Equipment Industrial Automation Elevators Interactive Kiosks Industri
Slide 16: zForce
2022 - 05 - 11 © Neonode 2001 - 2022 · www.neonode.com · Nasdaq (NEON) 16 x Advanced IR - based technology platform x Patent protected x Featured in over 85 million products Touch Sensing Applications • Touch on displays • Touch on other surfaces Gesture Sensing Applications • Contactless touch • Ge
Slide 17: MultiSensing
2022 - 05 - 11 17 © Neonode 2001 - 2022 · www.neonode.com · Nasdaq (NEON) MultiSensing x Smart AI - based algorithms x Flexible, hardware agnostic solution x Scalable; supports efficient development Driver Monitoring • Drowsiness and distraction • Positioning ; gaze direction In - cabin Monitoring •
Slide 18: Licensing Business Development Portfolio
Licensing Business Development Portfolio 2022 - 05 - 11 © Neonode 2001 - 2022 · www.neonode.com · Nasdaq (NEON) 18 M/P Development Expected Commercial Launch Prototype Development Expected Prototype Approval Evaluation Expected Go - Ahead Decision EMEA OEM Automotive DMS Automotive HUD OD Tier 1 #1
Slide 19: Neonode Touch Sensor Modules
2022 - 05 - 11 © Neonode 2001 - 2021 · www.neonode.com · Nasdaq (NEON) 19 Neonode Touch Sensor Modules COTS products featuring zForce Reflective technology 374mm 101mm
Slide 20: Contactless Touch Solutions
2022 - 05 - 11 20 Contactless Touch Solutions Two ways to go with our Touch Sensor Modules! Parallel plane solution Touch interaction area hovering above or in front of a display or surface Holographic solution Touch interaction on an in - air display © Neonode 2001 - 2021 · www.neonode.com · Nasdaq
Slide 21: Application Examples
2022 - 05 - 11 © Neonode 2001 - 2021 · www.neonode.com · Nasdaq (NEON) 21 Application Examples • Self - Ordering Kiosks • Vending Machines • Coffee Machines • Self Check - in Kiosks • Digital Signage • Medical Screens • Point - of - Sale Terminals • Elevators
Slide 22: Why Contactless Touch
Why Contactless Touch In a changing world, the requirements for safe interactions in public spaces are increasing at an unprecedented level, puttin g pressure on providers of self - service, multi - user kiosks, elevators and everyone whose product involves physical interactions. With Neonode’s Touc
Slide 23: Go-To-Market Strategy
2022 - 05 - 11 © Neonode 2001 - 2022 · www.neonode.com · Nasdaq (NEON) 23 Large OEMs Broad market customers ; small tech companies , engineering firms etc . Mid size OEMs, system integrators , engineering firms , and maintenance companies Large , often multi - national, corporations with v olume pot
Slide 24: Sales Cycle and Market Potential
Sales Cycle and Market Potential 2022 - 05 - 11 © Neonode 2001 - 2022 · www.neonode.com · Nasdaq (NEON) 24 Retrofits New Installs R&D Highest volume End - user decision makers Shortest sales cycle Partner solutions Sales Cycle OEM decision maker Medium sales cycle Engineering resources Longest sales
Slide 25: Partner Network
2022 - 05 - 11 © Neonode 2001 - 2022 · www.neonode.com · Nasdaq (NEON) 25 Partner Network Distributors Value Added Resellers North American Manufacturer's Reps SYNERGISTIC TECHNOLOGIES
Slide 26: Elevator Customers
2022 - 05 - 11 © Neonode 2001 - 2022 · www.neonode.com · Nasdaq (NEON) 26 Elevator Customers Xianghang OEM #1 OEM #2 Elevator Control Panel Manufacturers Elevator OEMs
Slide 27: TSM Business Development Portfolio – Elevators
2022 2023 2024 2025 TSM Business Development Portfolio – Elevators 2022 - 05 - 11 © Neonode 2001 - 2022 · www.neonode.com · Nasdaq (NEON) 27 OEM #6 OEM #7 OEM #5 OEM #8 OEM #9 OEM #3 OEM #4 OEM #10 M/P Development Expected Commercial Launch Prototype Development Expected Prototype Approval Evaluatio
Slide 28: Interactive Kiosk Customers
2022 - 05 - 11 © Neonode 2001 - 2022 · www.neonode.com · Nasdaq (NEON) 28 Interactive Kiosk Customers OEM #1 OEM #2 OEM #3 OEM #4 OEM #5 OEM #6 OEM #7 Interactive Kiosk Manufacturers
Slide 29: TSM Business Development Portfolio - Interactive Kiosks
2022 2023 2024 2025 TSM Business Development Portfolio - Interactive Kiosks 2022 - 05 - 11 © Neonode 2001 - 2022 · www.neonode.com · Nasdaq (NEON) 29 EMEA OEM TRP APAC OE APAC O APAC OEM TRP APAC OEM QSR APAC OEM POS APAC OEM OTHER EMEA OEM VEN AMER OEM OTHER APAC OEM TRP APAC OEM TRP APAC OEM TRP A
Slide 30: Agenda
Agenda 2022 - 05 - 11 30 © Neonode 2001 - 2022 · www.neonode.com · Nasdaq (NEON) 1. Q1 2022 Financial Results 2. Strategy and Business Update 3. Concluding Remarks 4. Q&A Neonode Inc. Q1 2022 | May 11, 2022
Slide 31: Concluding Remarks
Concluding Remarks Highlights in today’s presentation 2022 - 05 - 11 31 • We see an increasing interest in our TSMs and our solutions for contactless touch • We also see a growing interest in our zForce and MultiSensing technologis from automotive and avionics customers • COVID - 19 continues to bri
Slide 32: Agenda
Agenda 2022 - 05 - 11 32 © Neonode 2001 - 2022 · www.neonode.com · Nasdaq (NEON) 1. Q1 2022 Financial Results 2. Strategy and Business Update 3. Concluding Remarks 4. Q&A Neonode Inc. Q1 2022 | May 11, 2022
Slide 33: Thank you
2022 - 05 - 11 33 © Neonode 2001 - 2021 · www.neonode.com · Nasdaq (NEON) info@neonode.com neonode.com Subscribe to Neonode newsletter 2022 - 05 - 11 33 © Neonode 2001 - 2022 · www.neonode.com · Nasdaq (NEON) Thank you.
Slide 34: Appendix
Appendix 2022 - 05 - 11 34 © Neonode 2001 - 2021 · www.neonode.com · Nasdaq (NEON)
Slide 35: Non-GAAP Financial Measures
Non - GAAP Financial Measures 2022 - 05 - 11 © Neonode 2001 - 2022 · www.neonode.com · Nasdaq (NEON) 35 In addition to presenting our financial results in accordance with accounting principles generally accepted in the United Sta tes (“GAAP”), we use adjusted gross margin to measure our financial pe