Vigo Photonics Spolka Akcyjna · GPW:VGO
Vigo Photonics Spolka Akcyjna — VIGO Photonics — Q3 2023 Earnings Presentation
33 slides from Vigo Photonics Spolka Akcyjna's earnings presentation, Nov 16, 2023
Slide 1: Financial Results for Q3 2023
FINANCIAL RESULTS FOR Q3 2023 November 16, 2023
Slide 2: VIGO in a Nutshell
VIGO IN A NUTSHELL VIGO IS A WORLD LEADER IN HIGH-TECH SOLUTIONS – 36 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 Q3 2023 AGENDA 3. FINANCIAL RESULTS FOR Q3 2023 4. PERSPECTIVES 5. SUMMARY
Slide 4: Executive Summary
EXECUTIVE SUMMARY Q3 2023 SUMMARY Infrared detetctors Sale • PLN 17.2 million of consolidated revenues (+3% y/y) - increases in military (+59% y/y) and industrial applications (+3% y/y), more than 2-fold increase in sales of semiconductor materials; +13% y/y of consolidated revenues in Q1-Q3 2023 •
Slide 5: Summary of Q3 2023
SUMMARY OF Q3 2023
Slide 6: Growing demand in the military segment – agreement with PGZ and letter of intent with PCO
GROWING DEMAND FOR VIGO SOLUTIONS IN THE MILITARY SEGMENT – AGREEMENT WITH PGZ AND LETTER OF INTENT WITH PCO AGREEMENT WITH AN ENTITY OF THE POLISH ARMS GROUP LETTER OF INTENT WITH PCO FOR THE IMPLEMENTATION OF WORTH PLN 15.8 M INFRARED MATTERS AND APPLICATIONS IN THE POLISH ARMY • Contractor: entit
Slide 7: Support for commercialization through marketing activities in Q3 2023
SUPPORT FOR COMMERCIALIZATION OF SOLUTIONS THROUGH MARKETING ACTIVITIES IN Q3 2023 ACTIVITY AT INTERNATIONAL SCIENTIFIC CONFERENCES AND INDUSTRY FAIRS: • Korea – Poland Business Forum – uczestnictwo w panelu dyskusyjnym i nawiązywanie relacji z przedstawicielami firm Koreańskich. • SEMICON Taiwan –
Slide 8: 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 9: 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 10: 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 11: 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 12: 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 13: Optoelectronic Systems and Photonic Integrated Circuits Initiative
OPTOELECTRONIC SYSTEMS AND PHOTONIC INTEGRATED CIRCUITS (PIC) INITIATIVE TECHNOLOGY DEVELOPMENT Objective of the initiative Achievements in Q3 2023 • Designed and manufactured test structures of grating • Introduction, as the world's first manufacturer, of mid-infrared couplers for integration with
Slide 14: Financial Results for Q3 2023
FINANCIAL RESULTS FOR Q3 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 90.0 mn* value of VIGO's order portfolio at the e
Slide 16: Sales Revenues
SALES REVENUES SALES REVENUES IN Q3 2023 SALES REVENUES PER YEAR (PLN THOUSAND) • A slight increase in revenues in Q3 2023 (+2.3% y/y) to PLN 17.2 million 18 995 18 750 16 820 17 621 17 205 • The following factors influenced steady results: 1 314 1 564 800 1 161 1 649 • Price increased introduced at
Slide 17: Operating Costs
OPERATING COSTS OPEX IN Q3 2023 OPERATING COSTS IN Q3 2023 (PLN THOUSAND) • The costs of basic operating activities amounted to PLN 15.9 million (-2.0% y/y). 8 257 • The greatest impact on costs had: • salaries 7 084 • consumption of materials and energy • depreciation and amortization • The pressur
Slide 18: Financial Performance
FINANCIAL PERFORMANCE FINANCIAL PERFORMANCE IN Q3 2023 NORMALIZED EBITDA (PLN THOUSAND) AND NORMALIZED EBITDA MARGIN 29.9% 29.7% • Normalized EBITDA: PLN 5.1 million (+53% y/y). 25.5% 23.9% 19.8% • Operating income (EBIT): PLN 2.5 million (+52% y/y) 17.5% • Normalized net profit (excluding deferred
Slide 19: Cash Flow
CASH FLOW CASH FLOW IN Q1-Q3 2023 Period of: Period of: CASH FLOW STATEMENT [PLN THOUSAND] 01.01.2023 01.01.2022 • Cash flows from operating activities: reduced level of inventories and 30.09.2023 30.09.2022 increased level of receivables and liabilities OPERATING ACTIVITY Gross profit (loss) 7 681
Slide 20: Capital Expenditure
CAPITAL EXPENDITURE CAPEX IN Q1-Q3 2023 CAPITAL EXPENDITURES INCURRED IN 1Q-3Q 2023 (PLN THOUSAND) • CAPEX in Q1-Q3 2023 amounted to PLN 23.3 million (accrual basis), of which the most important expenses concerned: • R&D expenses: PLN 15.7 million, • new MOCVD Aixtron reactor: PLN 2.8 million, • pro
Slide 21: New Financing for R&D Regarding Cascade Technology of Infrared Detectors
NEW FINANCING FOR R&D REGARDING CASCADE TECHNOLOGY OF INFRARED DETECTORS AND MODULES VIGO ON THE LIST OF PROJECTS TO BE FUNDED IN NEARLY PLN 9.4 MILLION UNDER THE FIRST CALL FOR THE COMPETITION OF THE SMART PATH OF THE EUROPEAN FUNDS FOR A MODERN ECONOMY PROGRAM* • Project name: Long-wave cascade de
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 as a result of
Slide 24: VIGO's Core Business Is Ready for Dynamic Growth
VIGO’S CORE BUSINESS SUPPORTED BY INVESTMENTS INCURRED IN 2019-2022 IS READY FOR DYNAMIC GROWTH Accelerating the monetization of existing technological achievements thanks to sales support Europe North America Asia • Greater focus on growth on key markets • Acceleration of growth on the North Americ
Slide 25: Infrared Array Covering the Need to Increase Security and Defense
INFRARED ARRAY COVERING THE NEED TO INCREASE SECURITY AND DEFENSE OF COUNTRIES INFRARED ARRAY - GENERAL INFORMATION • Infrared detector arrays containing hundreds of thousands or millions of active pixels used in the construction of thermal imaging cameras for space and military applications and hav
Slide 26: Photonic Integrated Circuits Addressing the Need for System Miniaturization
PHOTONIC INTEGRATED CIRCUITS (PIC) ADDRESSING THE NEED FOR SYSTEM MINIATURIZATION IN COMMON DEVICES PHOTONIC INTEGRATED CIRCUITS (PIC) - GENERAL DEVELOPMENT OF THE FIRST MID-INFRARED PHOTONIC INTEGRATED CIRCUIT ON INFORMATION THE MARKET - MIRPIC PROJECT • A miniaturised circuit consisting of multipl
Slide 27: VIGO Among European Electronics Companies Granted Financing for HyperPIC
VIGO IS AMONG THE EUROPEAN COMPANIES FROM THE ELECTRONICS INDUSTRY TO BE GRANTED FINANCING >EUR 100 MN FOR THE HyperPIC THE EUROPEAN COMMISSION HAS ACCEPTED AN AMOUNT OF GRANT FOR VIOG PHOTONICS OF UP TO EUR 102.9 MN TO CARRY OUT THE HYPERPIC PROJECT. THE FINAL DECISION ON RELEASING FINANCING AND IT
Slide 28: VIGO Photonics Is a Part of IPCEI
VIGO PHOTONICS IS A PART OF IPCEI, ONE OF THE MOST IMPORTANT ISTRUMENT TO SUPPORT A NEW ECONOMIC AND COMPETITION POLICY OF THE EUROPEAN UNION IPCEI ME/CE IS ONE OF THE MOST IMPORTANT EUROPEAN INSTRUMENTS THAT SUPPORTS THE WHOLE EUROPEAN MICROELECTRONICS, PHOTONIC AND SEMICONDUCTOR INDUSTRIES
Slide 29: Summary
SUMMARY
Slide 30: 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 31: NICO
NICO
Slide 32: 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 33: 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 Photonics S.A. makes no representations (express or implied) about the informat