Ensilica Plc · LSE:ENSI
Ensilica — FY2023 Earnings Presentation
28 slides from Ensilica's earnings presentation, 2023
Slide 1: EnSilica plc Financial Results – Year ended 31 May 2023
EnSilica plc Financial Results – For the year ended 31 May 2023
Slide 2: Disclaimer & important notice
Disclaimer & important notice The information contained in this document (“Presentation”) and the presentation made to you involve risks and uncertainties because they relate to events and depend on circumstances that verbally has been prepared by EnSilica Plc (the “Company”). EnSilica Plc is a UK c
Slide 3: Presenting Team
Presenting Team Ian Lankshear Chief Executive Officer Co-founded EnSilica in 2001 as semiconductor design services business. Under his stewardship the company has enjoyed sustained growth based on market leading opportunities, innovation and export success. Strong technical and commercial background
Slide 4: EnSilica in summary
EnSilica in summary ✓ Established in 2001, EnSilica provided consultancy services around the design of high-end semiconductors (ASICs) ✓ Clients included Nokia, Arm, Panasonic and Sony ✓ In 2016, EnSilica began to migrate the model from consultancy to one of fabless ASIC Design & Supply ✓ Cost of de
Slide 5: Year ended May 2023 - Financial Highlights
Year ended 31 May 2023 - Financial Highlights REVENUES OPERATING PROFIT EBITDA £20.5m £0.83m £1.56m + 34% + 18% + 50% Increase on FY22 Increase on FY22 Increase on FY22 PROFIT AFTER TAX EPS CASH £1.79m 2.3p £3.1m + 1100% + 1020% £5.7m FY22 Increase on FY22 Increase on FY22 5
Slide 6: FY Highlights Summary
FY 23 Highlights Summary ❖ Exceeded IPO expectations ❖ Exceeded in Year upgrades ❖ Developed strong sales pipeline ❖ Regular contract wins throughout the year ❖ Significant progress on development of production supply revenue streams 6
Slide 7: Progress during 12 months ended May 2023
Progress during 12 months ended May 2023 ❖ June 2022 – Automotive ASIC entered commercial production. Initial supply revenue expectation of $25m ❖ July 2022 – Won contract with a leading European industrial OEM for a factory automation ASIC ❖ Contract worth >$30m over 7 years, NRE fully funded by cu
Slide 8: Income Statement
Income Statement £’000 FY23 FY22 Revenues +34% vs 2022 REVENUES 20,476 15,293 Gross Profit Margin improved by 690bps GROSS PROFIT 8,170 5,047 Adj. EBITDA +58% vs 2022 GROSS PROFIT % 39.9% 32.9% Adj. EBITDA Margin increased to 8.0% from 6.8% OPERATING PROFIT 825 6 INTEREST (778) (540) R&D Tax Credit:
Slide 9: Revenue Split
Revenue Split £’000 FY23 FY22 Fabless model total revenues are CHIP SUPPLY 2,856 1,970 our growth focus NRE 8,220 6,250 Chip Supply revenues are now FABLESS MODEL REVENUES 11,076 8,220 growing Strong consultancy business CONSULTANCY REVENUES 9,400 7,073 provides stability and contribution TOTAL REVE
Slide 10: Balance Sheet
Balance Sheet Capitalisation of development costs £’000 FY23 FY22 (intangible assets) £4.1m (2022 £2.2m) Intangible Assets 12,433 8,576 Cash position of £3.1m (2022 £5.7m) reduced Cash 3,095 5,742 due to investment in Intangibles and debt Debt 4,167 4,966 repayment Net Current Assets 6,711 7,606 Net
Slide 11: Cash Flow
Cash Flow Tax received £1,720 (2022 £3,306) £’000 FY23 FY22 Profit for the year 1,792 149 Investing activities of £4.521m (2022 Cash generated from operations 290 (1915) £2.492m) includes capitalised development costs of £4.1m (2022 £2.2m) Tax received 1,521 3,306 Net cash from operations 1,802 1,39
Slide 12: Progress since May 2023 year end and Outlook
Progress since May 2023 year end and Outlook ❖ August 2023 - €2.5m Satellite Broadband lead customer secured ❖ Relates to proprietary Satellite Broadband chip, development of which was part funded by ESA ❖ Contract includes order for first 50k devices ❖ Further upside from this initial customer and
Slide 13: Summary
Summary ❖ We have had a successful year with results ahead of our commitment at IPO ❖ Established and exciting position in each of our focus sub-sectors: ❖ Autos - $40m anticipated supply revenues plus $7m contract win in e-mobility ❖ Industrials - $30m anticipated supply revenues ❖ Satellite Comms
Slide 14: Thank you
Thank you 14
Slide 15: Appendices
Appendices 15
Slide 16: Corporate milestones
Awards A brief History of EnSilica Fabless semiconductor model adopted EnSilica founded Supported growth of Moved HQ to as a front-end Imagination Tech Acquired Oxford Oxford; Established digital design Dialog Semi Established mixed signal acquired Sheffield EnSilica services business Wolfson/Cirrus
Slide 17: EnSilica where we are now
EnSilica where we are now A CLEAR STRONG EXISTING HIGH GROWTH POSITIONED TO MISSION FOOTHOLD MARKETS CAPITALISE ✓ At EnSilica we are ✓ Our business supports a ✓ We are focused on the ✓ EnSilica has a growing shaping better futures global client base high-growth opportunities pipeline and order throu
Slide 18: What is an ASIC?
What is an ASIC? An application-specific integrated circuit (“ASIC”) is a custom chip designed for a specific purpose. ASICs are used in a wide range of applications and have considerable benefits. TYPICAL APPLICATIONS DIFFERENTIATORS SOME OEMS USING ASICS ✓ Automotive ✓ Novel functionality ✓ Google
Slide 19: EnSilica – a proven delivery model
EnSilica – a proven delivery model ✓ EnSilica focuses on the end-to-end design and supply of chips through the fabless semiconductor model ✓ Strong track record of delivering custom chips to established OEMs or well-funded start-ups, reducing customer risk and time to market ✓ Strong relationships w
Slide 20: ASICs market - strong momentum driven by global mega-trends
ASICs market - strong momentum driven by global mega-trends Customised ASIC chips are widely and increasingly used to differentiate market-leading products. In 2021, the opportunity was about $119Bn and projected to grow substantially. We are targeting to capture 0.5% of these markets, aligning with
Slide 21: Significant progress in Autos market
Significant progress in Autos market Market driven growth set to continue… $40m contract with Tier 1 supplier ✓ Number of chips per car increasing for EV and ✓ 2018 – $1.5m NRE commenced on design of advanced safety features ASIC for a Tier 1 supplier to a high-end vehicle manufacturer ✓ Next Genera
Slide 22: Capitalising on Industrials market
Capitalising on Industrials market Typical Industrial ASIC Applications $30m contract with leading European OEM ✓ Arm based system and bus controllers ✓ July 2022 – Awarded contract to Design & Supply an ASIC for industrial and factory ✓ Pressure and flow sensors automation products ✓ Gas sensors ✓
Slide 23: Material traction in Satellite Communications market
Material traction in Satellite Communications market Market growth set to continue… $15m contract win for ASIC within satellites ✓ The Starlink LEO constellation has demonstrated ✓ 2021 NRE revenues commenced for design of the demand for satellite based broadband ASIC for use in LEO satellites with
Slide 24: Strong EnSilica IP and market traction across Healthcare sector
Strong EnSilica IP and market traction across Healthcare sector Key market opportunities • Continuous glucose monitoring Our IP includes wireless The chip is already being • Blood pressure monitors interfaces such as blue-tooth evaluated by customers with • Vital signs including BPM low-energy and N
Slide 25: EnSilica - Contract win in e-mobility market
EnSilica - Contract win in e-mobility market E-mobility includes electric vehicles, electric September 2023 $7m contract win two wheelers, e-bikes and e-scooters ✓ Majority of NRE to be completed in year to end ✓ Sector projected CAGR of >14% from 2023 to May 2024 and will be fully funded by the 203
Slide 26: The Board of Directors
The Board of Directors Ian Lankshear Mark Hodgkins Janet Collyer David Tilston Noel Hurley Wasim Ahmed Chief Executive Officer Executive Chairman Senior Independent and Non-executive Director Non-executive Director Non-executive Director Non-executive Director • Co-founded EnSilica in • Started work
Slide 27: Competitive landscape for mixed signal ASICs
Competitive landscape for mixed signal ASICs CATEGORY COMPETITORS ENSILICA ✓ Indie Semi ✓ AnSem Our IP & technology focus provide us with Fabless (mixed signal ASIC) companies ✓ ICSense a competitive edge. We only pursue the ✓ Swindon Silicon Systems opportunities aligned to our skills ✓ Triad Semic
Slide 28: Competitive landscape for digital / SoCs
Competitive landscape for digital / SoCs CATEGORY COMPETITORS ENSILICA’S POSITIONING If there are specialist area such as Radar, safety related automotive or industrial, modems or beamforming then ✓ GUC (Taiwan) ✓ Avnet ASIC EnSilica has an edge ✓ Alphawave (Israel) Fabless / VCA companies Some of t