Vigo Photonics Spolka Akcyjna · GPW:VGO
Vigo Photonics Spolka Akcyjna — VIGO Photonics — Q1 2023 Earnings Presentation
27 slides from Vigo Photonics Spolka Akcyjna's earnings presentation, May 25, 2023
Slide 1: Financial Results for Q1 2023
FINANCIAL RESULTS FOR Q1 2023 May 25, 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 Q1 2023 AGENDA 3. FINANCIAL RESULTS FOR Q1 2023 4. PERSPECTIVES
Slide 4: Executive Summary: Q1 2023 Summary
EXECUTIVE SUMMARY Q1 2023 SUMMARY Infrared detetctors Improving sales • PLN 18.8 million of consolidated revenues (+60% y/y) - increases in industrial (+33% y/y), military (over 10x y/y), transport (+50% y/y) and semiconductor materials applications (nearly 3x y/y) and decrease in science and medici
Slide 5: Summary of Q1 2023
SUMMARY OF Q1 2023
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 (PIC) 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 Agreement for the Supply of Detectors
NEW AGREEMENT FOR THE SUPPLY OF DETECTORS AGREEMENT WITH A GERMAN CONTRACTOR FOR THE SUPPLY OF DETECTORS VALUE OF UP TO EUR 3.5 MILLION • Contractor: Customer from Germany • Subject of the contract: delivery of detectors for precise and fast control of laser pulses (another VIGO contract with this c
Slide 13: Support for Commercialization Through Marketing Activities in Q1 2023
SUPPORT FOR COMMERCIALIZATION OF SOLUTIONS THROUGH MARKETING ACTIVITIES IN Q1 2023 INCREASED ACTIVITY AT INTERNATIONAL SCIENTIFIC CONFERENCES AND INDUSTRY FAIRS: • SPIE Photonics West (USA) - participation in the largest industry photonics conference in the world; strong promotion of the VIGO Photon
Slide 14: Financial Results for Q1 2023
FINANCIAL RESULTS FOR Q1 2023
Slide 15: Constantly Growing Order Portfolio
CONSTANTLY GROWING ORDER PORTFOLIO VISIBLE CONTINUOUS DEVELOPMENT OF PHOTONICS AND MIDDLE-IR SOURCES MARKETS AND INCREASING DEMAND FOR VIGO PRODUCTS, CONSTANTLY INCREASE THE ORDER PORTFOLIO DESPITE VARIABLE MARKET ENVIRONMENT ORDER BOOK 2022 2023 PLN 24.2 mn value of VIGO's order portfolio at the en
Slide 16: Sales Revenues
SALES REVENUES SALES REVENUES IN Q1 2023 SALES REVENUES PER YEAR (PLN THOUSAND) • PLN 18.8 million of consolidated sales revenue (+60% y/y) 71 497 67 874 • Sales of detectors and detection modules in the amount of PLN 17.2 million (+54% y/y), and semiconductor materials PLN 1.6 million 53 451 (3x y/
Slide 17: Operating Costs
OPERATING COSTS OPERATING COSTS (OPEX) IN Q1 2023 OPERATING COSTS IN Q1 2023 (PLN THOUSAND) • The costs of basic operating activities amounted to PLN 17.5 million (+26% y/y). • The greatest impact on the increase in costs had: • salaries 5 372 • usage of materials and energy 4 618 • depreciation 4 2
Slide 18: Financial Performance
FINANCIAL PERFORMANCE FINANCIAL PERFORMANCE IN Q1 2023 ADJUSTED EBITDA (PLN THOUSAND) AND EBITDA MARGIN • Adjusted EBITDA: PLN 5.6 million (2x y/y). 38% 40% 46% 38% 22% 24% 30% 27 335 • Operating profit (EBIT): PLN 3.7 million (over 2x y/y) 24 472 17 110 • Net profit adjusted for deferred tax: PLN 3
Slide 19: Cash Flow
CASH FLOW CASH FLOW IN Q1 2023 01.01.2023 - 01.01.2022 - CASH FLOW STATEMENT [PLN THOUSAND] • Cash flows from operating activities: reduced level of inventories and 31.03.2023 31.03.2022 reduced level of receivables Total adjustments: 2 450 6 328 Amortisation and/or depreciation 2 832 1 776 • Cash f
Slide 20: Capital Expenditure
CAPITAL EXPENDITURE CAPEX IN Q1 2023 CAPITAL EXPENDITURES INCURRED IN Q1 2023 (PLN THOUSAND) • CAPEX in Q1 2023 amounted to PLN 10.4 million (on an accrual basis), of which the most important expenses concerned: • R&D expenses: PLN 6.0 million, • new MOCVD Aixtron reactor: PLN 2.4 million, 5 952 • p
Slide 21: New Cofinancing for R&D Works on a Water Quality Sensor
NEW COFINANCING FOR R&D WORKS ON A WATER QUALITY SENSOR VIGO ON THE LIST OF PROJECTS FOR CO-FINANCING PLN 9.4 MILLION UNDER THE FIRST COMPETITION OF THE HYDROSTRATEG GOVERNMENT STRATEGIC PROGRAM "INNOVATIONS FOR WATER MANAGEMENT AND INLAND SHIPPING" • Project name: Development of an innovative photo
Slide 22: Outlook
OUTLOOK
Slide 23: 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 24: 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 25: NICO
NICO
Slide 26: 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 27: 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