29 slides from Vigo Photonics Spolka Akcyjna's earnings presentation, Mar 9, 2022
Slide 1: Financial Results for 2021
FINANCIAL RESULTS FOR 2021 March 2022
Slide 2: Executive Summary
EXECUTIVE SUMMARY SUMMARY OF ACHIEVEMENTS IN 2021 • The highest financial results in VIGO's history: sales revenues of PLN 71.5 million (+34% y/y), adjusted EBITDA of PLN 29.1 million (+19% y/y), net profit* of PLN 24.3 million (+35% y/y) • High margins maintained: adjusted EBITDA margin 41% and adj
Slide 3: VIGO in a Nutshell
VIGO IN A NUTSHELL 35 years of experience VIGO is a world leader in high-tech solutions - the most advanced mid-infrared photonic detectors, modules dedicated to these detectors and semiconductor materials and operations Headquarters in Poland and branch offices in USA and Taiwan Operating in the fa
Slide 4: Global Reach
GLOBAL REACH COOPERATION WITH GLOBAL CORPORATIONS MARKET SHARING 2021 AND THE SECURITY INDUSTRY POLAND 4% ASIA 10% Safran Aerotechnics Emerson Electric Co. (Smart munitions) (Industrial Gas Analysers) NORTH AMERICA 10% EUROPE 76% Caterpillar TRUMPF (Railway Safety Systems) (Lasery Przemysłowe ) Supp
Slide 5: Rapid Development
RAPID DEVELOPMENT FINANCIAL RESULTS AND TARGETS SALES REVENUES (PLN MILLION) • Triple sales revenue in 4 years. In 2021, a 34% increase to PLN 71.5m, well above the industry 71,5 • Maintaining high levels of profitability : • EBITDA above 40% 53,5 • Net profitability (without deferred tax) over 34%
Slide 6: Technology and Products - Processes
TECHNOLOGY AND PRODUCTS - PROCESSES COMPLETE LINE FOR THE MANUFACTURE OF SEMICONDUCTORS AND PHOTONIC DEVICES (FROM NEAR TO FAR INFRARED) 1. EPITAXY 2. PROCESSING 3. PACKAGING 4. INTEGRATION INTO ELECTRONICS Production of semiconductor layers from Processing of MCT and III-V Automated assembly, packa
Slide 7: Key Events: War in Ukraine
KEY EVENTS WAR IN UKRAINE Impact on future results: • Marginal sales to the Russian market (approx. PLN 250k in 2021; 0.3% share of total revenues) • Sales of infrared detectors are not subject to sanctions, though end-user verification would be required (ban on sales to aerospace applications) • No
Slide 8: Key Events: COVID-19 Pandemic
KEY EVENTS COVID-19 PANDEMIC Internal situation: • Difficult start to 2021 and again Q4 2021 • Relatively high levels of inoculation among staff, which effectively reduced employee absenteeism in H2 2021 • Currently a marginal risk to the Company's operations • In H1 2021, shift work was implemented
Slide 9: Publication of the Development Strategy by 2023 and 2026
PUBLICATION OF THE DEVELOPMENT STRATEGY BY 2023 AND 2026 2026 VIGO STRATEGY - we have identified a number of business opportunities to realise growth ambitions by 2026 • New VIGO Strategy for 2021-2026 announced on 16 June 2021 400 • New directions of activities based on new technologies (infrared s
Slide 10: Launch of the U.S. Branch
LAUNCH OF THE U.S. BRANCH EXPANSION IN THE USA MARKET - INCREASE OF VIGO'S SHARE BUSINESS ASSUMPTIONS FOR THE EXPANSION INTO THE US AND ASIAN MARKETS • Q3 2021 – establishment of VIGO Photonics US: hiring a CEO, team building, recruitment • VIGO Photonics USA: accelerated growth of VIGO • Q4 2021 –
Slide 11: Agreements with New Distributors
AGREEMENTS WITH NEW DISTRIBUTORS NEW DISTRIBUTORS IN 2021- DEVELOPMENT OF SALES CHANNELS VIGO DISTRIBUTORS WORLDWIDE DYNOTECH INSTRUMENTS PVT LTD 26 companies in 19 countries INDIA NANOR AB DENMARK/SCANDINAVIA ACAL BFI DACH REGION LASTEK PTY LTD. AUSTRALIA AND OCEANIA TME GLOBAL REACH
Slide 12: Participation at Trade Fairs and Development of Social Media
PARTICIPATION AT TRADE FAIRS AND DEVELOPMENT OF SOCIAL MEDIA ACTIVE PARTICIPATION IN CONFERENCES AND TRADE FAIRS • EPIC PHOTONICS+ (Online) - lecture on III-V supergrids, virtual stand and 5 thematic chat-rooms • OPIE'2021 (Japan) - distributor support • MSPO (Poland) - promotion of arrays and detec
Slide 13: Created a New Brand: VIGO Photonics
CREATED A NEW BRAND: VIGO PHOTONICS THE DYNAMIC DEVELOPMENT OF THE COMPANY, NEW OPENING UP TO NEW TECHNOLOGIES AND THE BRAND ESTABLISHMENT OF THE FIRST VIGO SYSTEM BRANCHES IN ASIA AND NORTH AMERICA HAVE LED TO THE CREATION OF ONE GLOBAL BRAND - VIGO PHOTONICS Steps taken: • Creation of a new brand
Slide 14: Processing 2.0 - Construction of a New Cleanroom
PROCESSING 2.0 - CONSTRUCTION OF A NEW CLEANROOM INVESTMENT OBJECTIVE 2015 1. Increase in production repeatability 2. Detector chip manufacturing technology 3. Reduction of production costs 4. Meeting the highest quality requirements (military, space, semiconductor industries) SCOPE: modernisation o
Slide 15: MCT+ Detectors Initiative
MCT+ DETECTORS INITIATIVE TECHNOLOGY DEVELOPMENTS COMMERCIALISATION - SAMPLE PROJECTS Objective of the initiative TRL 8 TRL 9 • Exploitation of the market in its gradual decline by improving TRL 5 TRL 6 TRL 7 Proto- Customer Implementa Client Product Demon- the customisation process and exploring un
Slide 16: III-V InAsSb Detectors Initiative
III-V InAsSb DETECTORS INITIATIVE TECHNOLOGY DEVELOPMENTS COMMERCIALISATION - SAMPLE PROJECTS Objective of the initiative TRL 8 TRL 9 • Becoming No. 1 in the market of III-V detector manufacturers TRL 5 TRL 6 TRL 7 Customer Implementa Client Product Demon- Proto- in the MidIR range. ImplementingT2SL
Slide 17: III-V InGaAs Detectors Initiative
III-V InGaAs DETECTORS INITIATIVE TECHNOLOGY DEVELOPMENTS COMMERCIALISATION - SAMPLE PROJECTS Objective of the initiative TRL 8 TRL 9 • Market entry of III-V InGaAs detectors TRL 5 TRL 6 TRL 7 Proto- Customer Implementa Client Product Demon- valida- -tion into concept strator type Achievements in 20
Slide 18: Epitaxy III-V Initiative
EPITAXY III-V INITIATIVE TECHNOLOGY DEVELOPMENTS COMMERCIALISATION - SAMPLE PROJECTS Objective of the initiative TRL 8 TRL 9 • Gaining visibility in the epitaxy services market, exploring market TRL 5 TRL 6 TRL 7 Proto- Customer Implementa Client Product Demon- niches for photonic instruments (new V
Slide 19: Arrays Initiative
ARRAYS INITIATIVE TECHNOLOGY DEVELOPMENTS Objective of the initiative Hybridisation with silicon Designing ROIC systems readout chips • Becoming a major supplier of detectors for the Polish army/armament industry, winning customers outside Poland (industry, space). • Development of cooled arrays pro
Slide 20: Financial Results: Sales Revenues
FINANCIAL RESULTS SALES REVENUES SALES REVENUE PER YEAR [kPLN] • A 46% year-on-year increase in sales volumes to over 12,000 71 497 detectors and detection modules 4 285 • An increase in sales revenue by 34% to PLN 71.5 million, 53 451 including the sales of detectors to PLN 67.2 million (+30% y/y)
Slide 21: Financial Results: Operating Costs
FINANCIAL RESULTS OPERATING COSTS OPERATING COSTS IN 2020 AND 2021 [kPLN] • Core operating expenses in 2021 increased by 28% compared to 2020 • The following had the greatest impact on the increase in costs: 20 003 • an increase in the volume of production, which resulted in higher costs of material
Slide 22: Financial Results: EBIT and EBITDA
FINANCIAL RESULTS EBIT AND EBIT PROFITABILITY IN 2017-2021 35,9% 37,8% FINANCIAL PERFORMANCE 30 000 34,1% 34,6% 40,0% 32,7% 30,0% • Operating profit (EBIT): PLN 24.72 million (+22% y/y). 20 000 20,0% 24 725 • Adjusted EBITDA: PLN 29.1 million (+19% y/y). 10 000 20 231 12 768 14 017 10,0% 9 751 • Net
Slide 23: Financial Results: Cash Flow
FINANCIAL RESULTS CASH FLOW Cash Flow Statement [PLN thousand] 2021 2020 ▪ The company generates stable cash flows Total adjustments: -282 3 105 ▪ Operating activities generated PLN 24.1 million, which was impacted Amortisation and/or depreciation 6 753 6 244 by an increased level of receivables rel
Slide 24: Financial Results: Capital Expenditure
FINANCIAL RESULTS CAPITAL EXPENDITURE / CAPEX CAPITAL EXPEDINTURES INCURRED IN 2021 [kPLN] 22 466 • Expenditure in 2021 amounted to PLN 60 million (accrual), of which the 19 714 most significant expenditure related to : • Cleanroom reconstruction (PLN 22.5 million) • R&D expenses (PLN 19.7 million)
Slide 25: Perspectives: Short-Term Outlook
PERSPECTIVES SHORT-TERM OUTLOOK Plan for 2022 PLN 80 million revenue, including: • Industry - Growth of min. 30%, especially on the US market, in environmental applications, semiconductor industry, possible higher growth in case of positive validation of new products by customers • Transportation -
Slide 26: Perspectives - Summary
PERSPECTIVES - SUMMARY CONTINUE TO EXECUTE THE 2023 AND 2026 STRATEGY WITH A FOCUS ON PRODUCTION EFFICIENCY AND STRATEGIC INITIATIVES BASED ON VIGO'S UNIQUE TECHNOLOGIES AND ACCELERATE COMMERCIALISATION OF NEW SOLUTIONS IN A FAST-GROWING, FORWARD-LOOKING MARKET • New emerging industries: wearable-la
Slide 27: Q&A Session
PHOTONICS Q&A SESSION Zi
Slide 28: Thank You for Your Attention
THANK YOU FOR YOUR ATTENTION Contact: Małgorzata Młynarska Investor Relations Manager, cc group e: malgorzata.mlynarska@ccgroup.pl m: +48 697 613 709
Slide 29: 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