Seeing Machines Limited · LSE:SEE
Seeing Machines — FY2023 Earnings Presentation
22 slides from Seeing Machines's earnings presentation, Oct 16, 2023
Slide 1: FY2023 Results
FY2023 Results Paul McGlone, CEO Martin Ive, CFO October 2023
Slide 2: Unlocking shareholder value
Unlocking shareholder value Key Factors / Initiatives - High margin royalty revenue in Automotive as cars on road increase over coming quarters and years - Launch of Guardian Generation 3 will be lower cost to produce, scale potential, geographic expansion, and meet European GSR compliance - Increas
Slide 3: Seeing Machines Regulatory Strategy
Seeing Machines Regulatory Strategy ˗ European GSR in force today for Drowsiness, with Distraction to be Snapshot: Regulatory Ecosystem required in 2026. Applies to all CARS, VANS, TRUCKS & BUSES. ˗ Euro NCAP is focus for Seeing Machines’ near-term roadmap. On Occupant Status Monitoring Working Grou
Slide 4: Growing market opportunity across transport
Growing market opportunity across transport Euro NCAP, GSR requires DMS + semi-automated 54+ MILLION GLOBAL DMS features driving increased Automotive fitment over time FITMENTS IN CY 20271 Guardian Gen 3 leans into 330,000+ COMMERCIAL telematics, GSR requires DMS in Europe, set to VEHICLE ESTIMATED
Slide 5: Automotive – demonstrated fitment growth
Automotive – demonstrated fitment growth Six Programs at Start of Production Automotive - Cars on Road 250,000 1,200,000 250,000 1,000,000 200,000 200,000 DMS Fitment 800,000 150,000 DMS Fitment 150,000 600,000 100,000 100,000 400,000 50,000 50,000 200,000 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2
Slide 6: Market Dynamics – DMS / OMS
Market Dynamics – DMS / OMS 90,000 80,000 ˗ Market share expectations remain at ~40% by 2028 70,000 ˗ 100%+ CAGR in production DMS Fitment (‘000) 60,000 50,000 volumes for awarded programs to FY26 40,000 30,000 ˗ Euro NCAP and EU GSR continue to drive demand 20,000 10,000 ˗ Structure of RFQs changin
Slide 7: Guardian drives ARR growth
Guardian drives ARR growth KPIs Actual: Guardian Connections, Backlog Cumulative Guardian Connections 60,000 12,000 140 50,000 10,000 120 40,000 8,000 100 Units (‘000) 30,000 6,000 80 20,000 4,000 60 10,000 2,000 40 - - Q2 Q3 Q4 Q1 Q2 Q3 Q4 20 FY2022 FY2022 FY2022 FY2023 FY2023 FY2023 FY2023 0 Monit
Slide 8: Strong revenue growth – outlook to FY2026
Strong revenue growth – outlook to FY2026 Business Unit Revenue Contribution FY2023 Business Unit Expected Revenue Contribution FY2026 Aviation Aviation 1% 5-10% 45-50% 54% Automotive 45% 45-50% Aftermarket Automotive Aftermarket • Revenue in FY2026 expected to be not less than US$125m • Contributio
Slide 9: Royalty revenue drives margin
Royalty revenue drives margin Revenue mix FY2023 Expected revenue mix FY2026 Services Royalties Services 17% 19% 20-25% 45-55% Royalties 20% 26% License 20-25% Hardware 17% Hardware <10% NRE NRE • Reasonably evenly split as inflection point reached in Auto • As business matures, high-margin royalty
Slide 10: Review of FY2023 Performance
Review of FY2023 Performance 10 Results Presentation, October 2023
Slide 11: FY2023 Highlights
FY2023 Highlights ANNUAL RECORD REVENUE RECURRING REVENUE CASH POSITION AT 30 JUNE 2023 US$321M US$57.8M US$13.6M US$36.1M AWARDED AUTOMOTIVE 48% from FY2022 27% from FY2022 PROGRAM VALUE 51,975 US$47.5M investment 1,000,000+ CARS ON ROAD GUARDIAN BALANCE SHEET STRENGTHENED WITH ACROSS 6 CONNECTIONS
Slide 12: Balance Sheet Strength
Balance Sheet Strength CASH POSITION WORKING CAPITAL CASH POSITION AT 30 JUNE 2023 UNWIND AT 30 SEPT 2023 US$36.1M US$15-20M US$30.8M FREE CASH OUTFLOW MONTHLY CASH BURN H2 FY23* H2 FY23* (US$32.1M) (~US$3.0M) * Working capital build up in H2 FY23 of US$16.6m largely related to the timing of Afterma
Slide 13: Financial Performance FY2023
Financial Performance FY2023 70% 48%* Company Revenue US$m 60 57.8 50 10% 33% 40 USD million 18% 38.7 35.6 30 -4% 36% 63% 36% 26.4 20 70% 22.6 4 Year CAGR – 26% 10 0 FY2019 FY2020 FY2021 FY2022 FY2023 Revenue Gross Profit * Underlying revenue growth in FY2023 of 20% after excluding the impact of exc
Slide 14: Aftermarket Revenue
Aftermarket Revenue FY2023 Aftermarket - revenue mix Aftermarket Revenue (US$m) 9% 35 Royalties 9% 45% 30 8% NRE 31.2 25 28.4 10% 100% 26.3 Services 36% USD million 20 15 18.1 46% 10 9.0 4 Year CAGR 36% 5 0 Hardware FY2019 FY2020 FY2021 FY2022 FY2023 Total Revenue Recurring Revenue 14 Results Presen
Slide 15: Automotive Revenue
Automotive Revenue FY2023 Automotive - revenue mix Automotive Revenue (US$m) 35 Hardware 166% 2% 30 NRE Royalties 25 25.8 29% USD million 25% 20 15 9% 8% 26% 10 9.6 8.0 9.1 4 Year CAGR 41% 43% 5 6.5 - FY2019 FY2020 FY2021 FY2022 FY2023 License Total Revenue Royalty Revenue * Underlying revenue growt
Slide 16: Aviation Revenue
Aviation Revenue FY2023 Aviation - revenue mix Aviation Revenue (US$m) 1.00 393% 0% NRE 0.7 0.7 22% USD million 0.50 78% 37% -29% 0.2 0.1 0.1 0.00 FY 2019 FY 2020 FY 2021 FY 2022 FY 2023 License 16 Results Presentation, October 2023
Slide 17: Opex Investment
Opex Investment Opex Investment Mix 100% 90% - Additional investment in research 80% and development to resource 70% Automotive and Guardian projects 60% - Flexible and lower cost 50% development resources engaged 40% to manage fluctuations in 30% requirements 20% 10% - Disciplined cost growth in ot
Slide 18: FY2024 Outlook
FY2024 Outlook • Doubling of Automotive annual production units • 25% increase in connected Guardian units • Guardian Gen 3 to launch January 2024, initial focus to support GSR compliance in Europe • Aviation to contribute ~5% of FY24 revenue based on launch of Gen 1 of joint solution • Reduction in
Slide 19: Thank you
Thank you
Slide 20: Disclaimer
Disclaimer This presentation (the “Presentation”) has been prepared exclusively by Seeing Machines Ltd (together with its affiliates, the "Company”) for the sole use of the initial recipient thereof on a confidential basis and for discussion purposes only. The information contained in the Presentati
Slide 21: APPENDIX
APPENDIX 21. Add footer here Ps } seeingmachines
Slide 22: FY2023 Results Summary
FY2023 Results Summary US$000's FY2023 FY2022 Growth % Revenue 57,771 39,000 48% Cost of goods (28,873) (21,492) 34% Gross profit 28,898 17,508 65% Operating costs (39,127) (34,880) 12% FX gains/other income 947 1,099 (14%) EBITDA (9,283) (16,273) (43%) Depreciation & amortisation (3,973) (2,050) 94