Next Biometrics Group Asa · OSL:NEXT
Next Biometrics Group Asa — Q1 2019 Earnings Presentation
19 slides from Next Biometrics Group Asa's earnings presentation, May 21, 2019
Slide 1: Q1-2019 Presentation
NEXT Biometrics.Group ASA Q1-2019 Presentation Oslo, May 21, 2019 Ritu Favre, Chief Executive Officer Knut Stalen, Chief Financial Officer Alain Faburel, Chief of Sales & Marketing Officer Oslo Bars: NEXT OTC: NXTBF
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: Business Highlights Q1-2019
Business Highlights Q1-2019 Government ID: • Several design-in agreements signed • New PO’s for India received and revenue expected to accelerate in H2-2019 Smart Card: • Agreement signed with tier-2 smart card manufacturer WizCard, Taiwan • Received and delivered purchase order for 30,000 sensors f
Slide 4: Key Financials Q1-2019
Key Financials Q1-2019 Key Financials: • Growth: +18% to NOK 27.5 million compared with NOK 23.3 million in Q1-2018 • Revenue slightly down from NOK 29.3 million in Q4-2018 due to lower notebook build rates during Chinese New Year • Revenue diversification showing further progress • Gross margin: 34
Slide 5: Key Figures Q1-2019
Key Figures Q1-2019 Profit and loss Q1-2019: Q1 Q2 Q3 Q4 Q1 Revenue of NOK 27.5 million, compared with NOK million 2018 2018 2018 2018 2019 2018 NOK 29.3 million in Q4-2018 Revenue 23.3 25.6 30.2 29.3 27.5 108.4 • Notebook volumes the main driver COGS (18.8) (18.9) (21.1) (18.8) (18.2) (77.6) • Anno
Slide 6: Peak OPEX and R&D Investment Levels Passed
Peak OPEX and R&D Investment Levels Passed R&D related vs non-R&D related OPEX1 NOK million (excl. cost of options ) OPEX stable over last 3 quarters 60 Non-R&D R&D R&D focused on Smart Card and 50 Government ID • Projects on track for expected volume 40 market take off 31 Cost reduction program 29
Slide 7: EBITDA and Cash Flow Performance
EBITDA and Cash Flow Performance MNOK EBITDA ex options 0 EBITDA: -5 -10 • Q1-2019 EBITDA-loss excl. options -15 -20 includes severance and other one-off -25 effects of NOK 4.8 million -30 -35 (37) (35) (37) (38) (36) (35) (35) • Q4-2018 benefitted from NOK 5 million -40 (41) (41) positive tax schem
Slide 8: Balance Sheet & Cash Flow Development
Balance Sheet & Cash Flow Development Balance sheet Cash flow development NOK million NOK million Liabilities* 38 Cash 189 179 189 258 Equity Receivables 26 Inventory 28 (36) 46 Non-current* 54 0 *) Included the effect of the implantation of IFRS16 - Leases Cash at period start Operations Investing
Slide 9: NEXT Technology Position: Higher Security with Larger Sensor Size
NEXT Technology Position: Higher Security with Larger Sensor Size At over 169 mm2, Security flexible ASIC sensors meet ISO standards. Government Financial Identification FAP20: 15x20mm2 Inclusion Cards Govt ID Cards Corp Retail Payment Access Cards Cards Access control Smart cards 12x17mm2 sensor No
Slide 10: Leveraging NEXT's Large Size, Cost Benefit in Four Target Markets
Leveraging NEXT’s Large Size, Cost Benefit in Four Target Markets Smart Card Government ID #1 priority Win market share Notebook Access control Be relevant and Leverage existing Stay strong portfolio through distribution channels www.nextbiometrics.com 10
Slide 11: Physics Matters!
Physics Matters! Results with INNO FPC FAR 1:10,000 FAIL NXL NXS UPG (FRR) SDT False Non-Match Rate (FNMR) 13% Convenience -1 10 6% 4% 3% -2 .1% 10 -8 -6 -4 10 10 10 Security(FAR) False Match Rate (FMR) Higher Number of Features Size Makes the Difference LTPS Advantages • Easy, one-touch enrollment
Slide 12: Smart Card – Build Traction for Success in the Evolving Payment Market
Smart Card – Build Traction for Success in the Evolving Payment Market Achievements Fingerprint Recognition Smart Card* Biometric payment card specification phase-1 delivered to US Million units payment network 533 Agreement with Taiwan-based WizCard on the development of biometric smart card so
Slide 13: Government ID India – Win Market Share
Government ID India – Win Market Share Achievements India Pipeline Signed 3 agreements out of 4 forecasted in January Thousand sensors Started shipments in February Customer Contract Status Delivered customized product to customer AqTronics (A) Design-in with POS vendor Basewin Digitsecure
Slide 14: Government ID General Market – Build Global Position
Government ID General Market – Build Global Position Achievements Top 5 Global POS Terminal Vendors 2017* Partnership and supply agreement with Newland for Million units biometric POS (May) Pipeline 2019 5.9 Pax 6.2 • Sign supply agreements following design-in for general Verifone Government ID ma
Slide 15: Access Control – Volumes Emerging
Access Control – Volumes Emerging Achievements Access Control Fingerprint Recognition* Market entry into Russia through new distributor UniComm Million units 28 Expanded regional coverage through existing distributor 25 2 design-in projects with end customers in Turkey 22 19 Design-in and fi
Slide 16: Targeting the high-security commercial rugged notebook market
Targeting the high-security commercial rugged notebook market Achievements Further ramp of Fujitsu volumes over the course of 2019 Positive customer feedback for new FAP20 solution Priorities • Maintain strong customer relationships • Leverage existing product portfolio and FAP20 in target noteb
Slide 17: NEXT Biometrics Strategic Priorities
NEXT Biometrics Strategic Priorities TECHNOLOGY GROWTH & PROFITABILITY • Mass production of entire portfolio • Revenue growth in government ID, • Further commercialization of access control, notebook payment smart card (dual • Further gross margin improvement interface) solution • OPEX reduction pro
Slide 18: Key Business Steps 2019
Key Business Steps 2019 • Increase design wins and revenue across product range • Ramp India sales and capitalize contracts and order backlog • Further expand smart card ecosystem partnerships and network • Demonstration and sampling of Dual Interface solution • Volume production start of FAP20 sens
Slide 19: www.nextbiometrics.com
Photocredits: iStock, Fujitsu, MobiOcean, NEXT Biometrics www.nextbiometrics.com 19
NEXT Biometrics Group — Q1 2019 Earnings Presentation on 6ix