Next Biometrics Group Asa · OSL:NEXT
Next Biometrics Group Asa — Q3 2019 Earnings Presentation
13 slides from Next Biometrics Group Asa's earnings presentation, Nov 12, 2019
Slide 1: NEXT Biometrics Group ASA Q3-2019 Presentation
NEXT Biometrics Group ASA Q3-2019 Presentation Oslo, November 12, 2019 Peter Heuman, Chief Executive Officer Knut Stalen, Chief Financial Officer Oslo Bars: NEXT OTC: NXTBF www.nextbiometrics.com 1
Slide 2: Disclaimer
Disclaimer This presentation includes and is based, inter alia, on forward-looking information and statements that are subject to risks and uncertainties that could cause actual results to differ. Such forward-looking information and statements are based on current expectations, estimates and projec
Slide 3: Management with Extensive Commercial and Technology Background
Management with Extensive Commercial and Technology Background Peter Heuman – CEO Dan Cronin – COO • Appointed in Sept 2019 • Joined NEXT as COO in 2017 • 15+ years of experience in management roles and on company boards • Master`s degree in Electrical Engineering, Georgia Institute of Technology •
Slide 4: Highlights
Highlights Revenue YTD of NOK 75.2 million, down 5% compared to same period last year Revenue of NOK 17.6 million in Q3-2019, down 42% from Q3-2018 as the US tier 1 customer reduced the number of platforms using NEXT sensors Gross margin of 27% in Q3-2019 (30% in Q3-2018), excluding non-recurring in
Slide 5: Key Figures Q3-2019
Key Figures Q3-2019 Profit and loss Revenue of NOK 17.6 million, down from NOK 30.2 million in Q3-2018 Q3 Q4 Q1 Q2 Q3 NOK million 2018 2018 2019 2019 2019 2018 • Reduced notebook volumes to US tier-1 customer Revenue 30.2 29.3 27.5 30.1 17.6 108.4 • Initially announced at Q3-2018 • Partly offset by
Slide 6: Continued OPEX reduction
Continued OPEX reduction R&D related vs non-R&D related OPEX1 NOK million (excl. cost of options ) 60 Disciplined approach to investments R&D Non-R&D and cost levels 50 Focus on generating near-term 40 opportunities 31 28 Payment card solution and FAP 20 30 27 29 25 23 sensor on track 19 21 20 20 10
Slide 7: EBITDA and Cash Flow Performance
EBITDA and Cash Flow Performance MNOK EBITDA ex options 0. EBITDA: -12.5 • Q3-2019 adjusted EBITDA-loss of NOK 34.7 million vs. NOK 35.7 million in Q3-2018 -25. (31) (35) (37) (36) (35) (35) (35) • Includes inventory write-down of NOK 3 million in (38) -37.5 (41) Q3-2019 -50. Q3-17 Q4-17 Q1-18 Q2-18
Slide 8: Balance Sheet & Cash Flow Development
Balance Sheet & Cash Flow Development Balance sheet Cash flow development NOK million NOK million Liabilities* 39 (32) Cash (1) 132 (1) 163 186 Equity 132 131 131 131 132 Receivables 22 23 Inventory 48 Non-current* *) Included the effect of the implantation of IFRS16 - Leases Cash at period Operatio
Slide 9: Targeting existing growth markets
Targeting existing growth markets Access Control Government ID • USD 100k sensor module • Design-in contracts (POS) purchase order for delivery in • High tendering activity in India Q4 2019 and into 2020 • Promoting One Touch ID FAP20 • Launched new module for harsh conditions (October) • Promoting
Slide 10: First impressions
First impressions Strengths Areas of improvement • Core hardware skills from Architecture to • Growth agenda Productification • Customer centric • Unique IP that addresses broad markets • Resource & Capital allocation • Strong manufacturing partners and proven execution delivering to multiple Tier 1
Slide 11: Main priorities
Main priorities • Accelerate short/mid-term commercial focus • Secure required sales competence Tangible Growth agenda • Improve technical sales support • Win market share in target segments • Prioritise external customer demand to fully leverage proven technology Customer centric • Improve company
Slide 12: Outlook
Outlook Reduced shipments to the US tier-1 notebook customer expected to impact revenue in the fourth quarter and early 2020 Challenging to immediately offset impact due to sales lead-times and design-in cycles Focus on diversification of customer base to drive increased revenue and generate a longe
Slide 13: NEXT Biometrics - One Touch. One You.
NEXT BIOMETRICS One Touch. One You. NEXT Biometrics 13
NEXT Biometrics Group — Q3 2019 Earnings Presentation on 6ix