Slide 1: 2019 Results
IG SYSTEM 2019 RESULTS March 2020
Slide 2: Agenda
AGENDA 1. About us 2. VIGO 2020+ Strategy 3. Operating and financial results Appendix 1 – selected financial data Appendix 2 – main applications of detectors 2
Slide 3: About Us - Key competitive advantages
ABOUT US // Key competitive advantages VIGO System S.A. is a global leader in the manufacture of uncooled infrared detectors. Having developed globally unique technology, VIGO System offers products of the highest parameters. Our competitive advantage is based on: › Over 30 years of experience in de
Slide 4: About Us - Revenues, development and market split
ABOUT US // Revenues [m PLN] // Development › 30 years of continuous technological development and market expansion 42,9 37,4 › Supplier of the high-tech components for the most demanding customers (NASA, ESA). 27,2 25,6 25,4 18,5 19,2 20,6 20,4 // Business relations with global 11,3 corporations: 8
Slide 5: VIGO 2020+ Strategy - Construction of a new production plant
VIGO 2020+ STRATEGY // Construcion of a new production plant The investment goals: › Increase production capacity to 100 thousand modules per year › Enabling flexible planning of production and customization of products › Lowering the price of products thanks to the scale of production Project compl
Slide 6: VIGO 2020+ Strategy - Processing 2.0 clean-room
VIGO 2020+ STRATEGY // Processing 2.0 – Construction of a new clean-room The investment goals: › Increased repeatability of production › Lowering production costs › Meeting the highest quality requirements (military, space, semiconductor industry) Scope & funding: › Modernization of the current VIGO
Slide 7: VIGO 2020+ Strategy - Products and technology development
VIGO 2020+ STRATEGY // Products and technology development New products › Prototypes of new modules presented during Photonics West 2020: › Cheap detection module (chip on a PCB in a miniature housing, optimized for 5µm), chip made from III-V materials, in MBE technology (inAsSb) › Array prototype u
Slide 8: VIGO 2020+ Strategy - Materials for photonics
VIGO 2020+ STRATEGY // Materials for photonics Project objectives: › Expansion of VIGO System's activity by the production of III-V semiconductor materials intended for mass application in photonics and electronics. Cooperation with renowned MOCVD technology experts (dr Włodzimierz Strupiński). Scop
Slide 9: VIGO 2020+ Strategy - Sales network and technology development
VIGO 2020+ STRATEGY // Materials for photonics › Sales network development › Expansion to the Asian market (VIGO representative in Taiwan) - starting operations from June 2020 › Increasing the sales team for the European market › A significant increase in interest in the Company's products › Fast in
Slide 10: VIGO 2020+ Strategy - VIGO Ventures
VIGO 2020+ STRATEGY // VIGO Ventures › Increased market recognition › Built relationships with many entities on the European market - easier sourcing of projects › Several projects in the investment path › QustomDot › The technology of cadmium-free quantum dots improving the efficiency of LED displa
Slide 11: Key Events
KEY EVENTS // Sales and marketing activities: › Participation in various fairs and conferences: › America: Photonics West, SPIE DCS, CLEO, › Asia: CIOE, Laser World of Photonics China, › Europa: Laser World of Photonics Europe, Sensor + Test, Optics & Photonics Days Finland, › Acquiring new distribu
Slide 12: Financial Results - Revenues by application
FINANCIAL RESULTS // Revenues by application [mln PLN] // Comment 30,0 › A significant increase in sales to PLN 42.9 million (+ 14.6% y/y). 25,4 › Significant sales increases in the industrial segment (industrial 25,0 gas analyzers, laser operation control, applications in the semiconductor industry
Slide 13: Financial Results - Operating costs
Financial results // Operating costs [mln PLN] // Comment › Salary costs increase due to higher employment (according to 14,00 13,16 the plan for 2019). 11,89 › Increase in material and energy costs due to the change in the 12,00 production structure in 2019 compared to 2018 and a significant increa
Slide 14: Financial Results - Profit and margins
FINANCIAL RESULTS // Financial results [mln PLN] // Comment 20,00 18,59 › Operating profit increase (+ 9.8% y/y), EBITDA (+ 14.6% 18,00 16,22 y/y) and net profit (+ 6.6% y/y). 16,00 14,02 13,88 14,00 12,77 13,02 › The increase in revenues was accompanied by a slight 12,00 10,00 decrease in profitabi
Slide 15: Financial Results - Expenditures 2019
FINANCIAL RESULTS // Expenditures 2019 [mln PLN] // Comment 20,0 › Expenditures in 2019 amounted to PLN 35.5 million 15,3 (accruals), which represents 88% of the plan. As part 14,9 15,0 14,0 of the construction of the new plant, the expenses 12,9 incurred accounted for 84.3% of the full-year plan. 9
Slide 16: Perspectives / Business Outlook - 2020 assumptions
PERSPECTIVES/ BUSINESS OUTLOOK // 2020 – assumptions › Maintaining significant dynamics of revenue growth in the infrared detector segment (while maintaining the current level of net profitability): › Military techniques - order from Zodiac Aerotechnics from 02.2020 (PLN 23 million, of which about P
Slide 17: Perspectives / Business Outlook - 2020 Summary
PERSPECTIVES/ BUSINESS OUTLOOK // 2020 - Summary › Launching new products for production on a larger scale and at a lower cost (detectors for IoT and Industry 4.0) › Development of production automation in a new production plant in order to prepare for the production of large volumes › Increasing th
Slide 18: Disclaimer
DISCLAIMER This presentation is prepared by VIGO System S.A. ("VIGO") for information purposes only and does not constitute an offer to purchase any securities or financial instruments or participate in any sort of commercial venture or a recommendation to execute any transactions, especially involv
Slide 19: Thank you for your attention
Thank you for your attention VIGO System S.A. ul. Poznańska 129/133 05-850 Ożarów Mazowiecki POLAND tel.: +48 22 733 54 10 fax: +48 22 665 21 55 email: info@vigo.com.pl
Slide 20: Appendix 1 - Statement of comprehensive income
APPENDIX 1 – SELECTED FINANCIAL DATA Statement of comprehensive income [kPLN] 2019 2018 Revenue from sale of products, goods and materials, including: 42 889 37 416 Cost of products, goods and materials sold, including: 15 875 16 936 Gross profit (loss) on sales 27 013 20 481 Selling costs 2 370 2 1
Slide 21: Appendix 1 - Assets
APPENDIX 1 – SELECTED FINANCIAL DATA ASSETS 31.12.2019 31.12.2018 Fixed assets 98 786 67 417 Tangible fixed assets 67 453 45 031 Intangible assets 12 371 6 755 Expenditures on development projects 16 650 14 368 Investments in jointly-controlled entities 2 308 1 262 Deferred revenue, prepayments 3 1
Slide 22: Appendix 1 - Equity and liabilities
APPENDIX 1 – SELECTED FINANCIAL DATA EQUITY AND LIABILITIES 31.12.2019 31.12.2018 Equity capital 68 063 54 221 Share capital 729 729 Capital from the issue of shares above nominal value 8 865 8 865 Revaluation reserve -56 -15 Other capitals 44 641 31 620 Present-period financial result 13 884 13 021
Slide 23: Appendix 1 - Statement of cash flows
APPENDIX 1 – SELECTED FINANCIAL DATA Statement of cash flows (PLN) 31.12.2019 31.12.2018OP OPERATING ACTIVITIES Net profit / loss 13 884 13 021 Total adjustments 1 562 -3 947 Depreciation/amortisation 4 587 3 459 Gains (loss) on exchange differences -176 -241 Gain (loss) on investing activities 6 -5
Slide 24: Appendix 2 - Main applications: Railway safety, Environment
APPENDIX 2 – MAIN APPLICATIONS // Railway safety › HIGH SPEED RAILWAYS SAFETY – sensors installed on tracks allow to monitor and detect the heating of the outer and inner bearings, the wheels and brakes. The system provides the absolute, relative and distinguishing temperatures of the elements in re
Slide 25: Appendix 2 - Main applications: Industry, Science and medicine
APPENDIX 2 – MAIN APPLICATIONS // Industry › SEMICONDUCTOR INDUSTRY - quality monitoring, process control › LASERS - control of laser power and synchronisation of impulses › OTHER - optimization of fuel mixture incinerated in vehicle engines, aerosol leak detection systems, lacquer layer thickness c
Slide 26: Appendix 2 - Main applications: Military, Homeland security
APPENDIX 2 – MAIN APPLICATIONS // Military › INTELLIGENT AMMUNITION – ammunition designed for in-depth engagement of enemy armored vehicles. Each warhead contains an infra red detector able to detect any tank or other combat vehicle, significantly improving hit accuracy. › LASER THREAD WARNING SYSTE