Dynavox Group Ab · OMXSTO:DYVOX

Dynavox Group Ab — Tobii Dynavox — Investor Day (February 2024)

76 slides from Dynavox Group Ab's investor day presentation, Feb 21, 2024

Slide 1: Capital Markets Day
Capital Markets Day 21 February 2024
Slide 2: Important information
Important information IMPORTANT: You must read the following before institutional buyers “QIBs” as defined in Rule 144A historical fact included in the Information are the opinions contained therein. The Information has continuing. The following applies to this document, under the Securities Act. By
Slide 3: Fredrik Ruben and Linda Tybring
Fredrik Ruben Linda Tybring Chief Executive Officer Chief Financial Officer 2024-02-21 3 © 2024 Tobii Dynavox AB (Publ)
Slide 4: Tara Rudnicki and Nils Normell
Tara Rudnicki Nils Normell President, North America President, Europe & Rest of World 2024-02-21 4 © 2024 Tobii Dynavox AB (Publ)
Slide 5: Today's agenda
Welcome Introduction to Tobii Dynavox Market fundamentals Today’s agenda Solution offering Break Strategy for profitable growth Financial performance and targets Concluding remarks Q&A 2024-02-21 5 © 2024 Tobii Dynavox AB (Publ)
Slide 8: Updated financial targets
Updated financial targets Time horizon 3-4 years 20% > 15% > 40% Growth Profitability Dividend Policy On average, grow revenue by To deliver an EBIT margin that Distribute at least 40% of 20% per year adjusted for reaches and exceeds 15% available net profits to currency effects, including sharehold
Slide 9: Brock & his family; Emily
Brock & his family Emily 6-year old who loves to jump & has a diagnosis of Prescriber who managed the autism center non-speaking autism where she worked with Brock & his family 2024-02-21 9 © 2024 Tobii Dynavox AB (Publ)
Slide 11: Brock's mother testimonial
His vocabulary has grown tremendously, and we love seeing our lil’ man finally being able to speak his mind. — Brock’s mother, Brianna 2024-02-21 11 © 2024 Tobii Dynavox AB (Publ)
Slide 12: Scott, user with ALS testimonial
For me the ability to communicate is primary. I can't imagine not having the Tobii. It’s my lifeline. I really don't know how I survived without it. — Scott, user with ALS 2024-02-21 12 © 2024 Tobii Dynavox AB (Publ)
Slide 14: Our history
Our history 2000 2003 2014 2019 2021 DynaVox lobbies Tobii discovers Tobii acquires Tobii Dynavox Tobii Dynavox spins successfully for US eye gaze control DynaVox and formally off from Tobii as a Medicare coverage for accessibility becomes Tobii incorporated as separate company of AAC devices Dynavo
Slide 15: Our Vision and Mission
Our Vision A world where everyone can communicate Our Mission We empower people with disabilities to do what they once did, or never thought possible 2024-02-21 15 © 2024 Tobii Dynavox AB (Publ)
Slide 16: Our purpose
~ 50M number of people who cannot communicate effectively without Our purpose communication aids today As the world leader in assistive communication, we will drive the market 2 2 forward while addressing a hugely underserved global audience. ~ M ~ % number of people diagnosed percentage of people y
Slide 17: Customer landscape
Prescribers Customer landscape Customers Users Funders 2024-02-21 17 © 2024 Tobii Dynavox AB (Publ)
Slide 19: Our comprehensive communication solution
Our comprehensive communication solution Language systems - From our catalogue of synthetic voices to our library of symbols to our text-based systems, we design highly customizable solutions. Software - Through our software, users can access computers, browse the web, text, and develop literacy ski
Slide 20: Our global reach
Our global reach Revenue break down per region¹ • North America 78% • Europe 18% • Other countries 4% Tobii Dynavox partners with local experts Tobii Dynavox presence ¹ Based on FY 2023 YTD December revenue 2024-02-21 20 © 2024 Tobii Dynavox AB (Publ)
Slide 21: Tobii Dynavox snapshot
Tobii Dynavox snapshot Revenue ~700 +25,000 Employees 1,613M SEK Voices by customer Net sales category 78 ~65 ~60% Public funding e-SAT Markets served 155M SEK ~30% Private insurance 47 EBIT (9,6% Margin) 500+ ~10% cNPS Funding contracts Private clients 2024-02-21 21 © 2024 Tobii Dynavox AB (Publ)
Slide 22: Experienced senior executives and Board of Directors
Experienced senior executives and Board of Directors Senior executives Board of Directors Fredrik Ruben Tara Rudnicki Maarten Barmentlo Åsa Hedin Chief Executive Officer President, North America Board member Chair of the Board Linda Tybring Kristen Cook Chief Financial Officer Chief Marketing Office
Slide 23: Positioned for sustainable growth
Positioned for sustainable growth • Our solution gives people a means of expressing themselves and a more meaningful life • Global leader in an underdeveloped market with significant growth potential • Ownership of expertise and the comprehensive solution • Consistent profitable growth 2024-02-21 23
Slide 25: Communication aids in the assistive technologies market
Communication aids in the assistive technologies market Assistive technologies Mobility aids (US$ 25–30bn) (US$ ~9bn) Hearing aids (US$ ~8bn) Cognition/memory aids Low vision/blind aids (US$ ~5bn) (US$ ~5bn) Communication aids* (US$ <0,5bn) Sources: emergenresearch.com, expertmarketreearch.com, fort
Slide 26: Meet Emily
Meet Emily Emily is a Speech Language Pathologist (SLP) 2024-02-21 26 © 2024 Tobii Dynavox AB (Publ)
Slide 27: Customer landscape
Prescribers Customer landscape Customers Users Funders 2024-02-21 27 © 2024 Tobii Dynavox AB (Publ)
Slide 28: Users
Prescribers Users ~50 million people who cannot communicate effectively without communication aids ~2 million people diagnosed yearly with a need for Customers communication aids Users Funders 2% of people diagnosed yearly who get communication aids Limited number served 2024-02-21 28 © 2024 Tobii D
Slide 29: Prescribers
Prescribers Prescribers ~200,000 in the US, which is the largest market ~5-10% work with assistive communication Customers ~5% of those who work with assistive communication make multiple prescriptions per year Users Funders Limited number educated 2024-02-21 29 © 2024 Tobii Dynavox AB (Publ)
Slide 30: Funders
Prescribers Funders ~1,500 in the US, which is the largest market 500+ contracts in place to ensure funding is authorized Customers Limited consistency Users Funders 2024-02-21 30 © 2024 Tobii Dynavox AB (Publ)
Slide 31: Why don't you just serve more people?
Why don’t you just serve more people? ~ 50M number of people who cannot communicate effectively without communication aids today 2024-02-21 31 © 2024 Tobii Dynavox AB (Publ)
Slide 32: How can we reach 50 million users
How can we reach 50 million users Education We educate prescribers about assistive communication, targeting them in groups to maximize our reach and ensure efficiency. Funding Through operational excellence, we expedite and ease the process of funding our communication solutions. Partnerships We cul
Slide 34: Solutions support a range of needs
Solutions support a range of needs Intellectual ALS Physical Autism Cerebral palsy Down’s syndrome Huntington’s Muscular dystrophy Multiple sclerosis Parkinson’s Rett syndrome Spinal muscular dystrophy Spinal cord injury 2024-02-21 34 © 2024 Tobii Dynavox AB (Publ)
Slide 46: Growth journey
Annual revenue growth 27% (SEK million) 18% 1613 1216 909 895 872 6% 1% 0% Growth journey 2019 2020 2021 Revenue 2022 FX adjusted 2023 EBIT 14% 11% 10% 7% 7% 155 127 101 82 60 2019 2020 2021 2022 2023 EBIT MSEK EBIT % 2024-02-21 46 © 2024 Tobii Dynavox AB (Publ)
Slide 48: Market expertise makes a difference
Market expertise makes a difference 2024-02-21 48 © 2024 Tobii Dynavox AB (Publ)
Slide 49: US market profile
US market profile ~200,000 prescribers 10% work with assistive communication 5% of those prescribers make multiple prescriptions per year Government funding available since 2001 legislation passed ~1,500 funders 500+ contracts in network 200+ team members to guide prescribers & users to meet funding
Slide 50: US growth journey
+24% +22% US growth journey 2019 2020 2021 2022 2023 2024-02-21 50 © 2024 Tobii Dynavox AB (Publ)
Slide 51: Growth lever 1: Education – Splitting territories
Growth lever 1: Education Splitting territories 2024-02-21 51 © 2024 Tobii Dynavox AB (Publ)
Slide 52: Revenue increased with territory splits
+24% +22% Revenue increased with territory splits 76 territories 77 territories 77 territories 79 territories 83 territories 2019 2020 2021 2022 2023 2024-02-21 52 © 2024 Tobii Dynavox AB (Publ)
Slide 53: A scalable model that delivers results
Southern Territory Ohio Los Angeles Florida Type Geo Demo Geo A scalable model that Number of delivers results employees 13 12 23 (#) ~125% ~260% Revenue ~120% growth Revenue increase ~20% ~10% ~45% per FTE 2024-02-21 53 © 2024 Tobii Dynavox AB (Publ)
Slide 54: Recent territory split – Geographic
~40% Recent territory split Geographic 2022 2023 2024-02-21 54 © 2024 Tobii Dynavox AB (Publ)
Slide 55: Recent territory split – Demographic
~60% Recent territory split Demographic 2022 2023 2024-02-21 55 © 2024 Tobii Dynavox AB (Publ)
Slide 56: Growth lever 2: Funding
Growth lever 2: Funding Navigating complex funding systems 2024-02-21 56 © 2024 Tobii Dynavox AB (Publ)
Slide 57: Field reps spent 30% of time supporting funding
Field reps spent 30% of time supporting funding Before funding excellence Early morning Morning Midday Afternoon Evening Appointments Appointments Appointments Appointments Appointments Funding support Funding support Funding support 2024-02-21 57 © 2024 Tobii Dynavox AB (Publ)
Slide 58: Field reps spend most of their time with prescribers
Field reps spend most of their time with prescribers After funding excellence Early morning Morning Midday Afternoon Evening Appointments Appointments Appointments Appointments Appointments 2024-02-21 58 © 2024 Tobii Dynavox AB (Publ)
Slide 59: Contracts & expertise save time & create value
~20% faster funding cycle time from submittal to delivery Contracts & expertise save time & create value ~35% faster payment cycle times from invoice to payment 2024-02-21 59 © 2024 Tobii Dynavox AB (Publ)
Slide 60: Appealing funding denials creates more value
Orders Paid via Appeals ($ million) 5,01 Appealing funding denials creates more value 3,58 2,43 2,50 2,33 1,80 1,33 2017 2018 2019 2020 2021 2022 2023 2024-02-21 60 © 2024 Tobii Dynavox AB (Publ)
Slide 61: The US is our biggest market today and tremendously underserved
• The US is our biggest market today and it is tremendously underserved • The biggest challenge is our lack of awareness • We need more educated reps in the field to support our professionals • The way to grow our market penetration is via territory splits and guiding our field reps to focus on educ
Slide 62: Growth via acquisitions – main target types
Growth via acquisitions – main target types Product acquisitions Acquiring local presence Acapela Group Rehadapt Safe Care ASK Technologies 2024-02-21 62 © 2024 Tobii Dynavox AB (Publ)
Slide 63: Growth lever 3: Partnerships – Acquiring local presence
Growth lever 3: Partnerships Acquiring local presence 2024-02-21 63 © 2024 Tobii Dynavox AB (Publ)
Slide 64: Local presence around the world
Local presence around the world Direct Local presence Partners 2024-02-21 64 © 2024 Tobii Dynavox AB (Publ)
Slide 65: Organic growth post acquisition
Ireland +143% Organic growth post acquisition 2022 2023 Denmark +100% 2022 2023 2024-02-21 65 © 2024 Tobii Dynavox AB (Publ)
Slide 66: Investing in local presence
Investing in local presence Assistive Communication Well-Functioning Funding Product Fit Infrastructure System 2024-02-21 66 © 2024 Tobii Dynavox AB (Publ)
Slide 67: Financial performance and targets
Financial performance and targets 2024-02-21 67 © 2024 Tobii Dynavox AB (Publ)
Slide 68: Introduction to financials
Quarterly Revenue Trend (SEK million) 473 424 362 381 320 335 255 288 207 245 246 165 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Introduction to financials 2021 2022 2023 • Proven profitable revenue growth since becoming a 56 stand-alone company December 2021 EBIT Development (SEK million) 48 • Global lead
Slide 69: Top-line performance
Revenue (SEK million) 22% 1613 1216 27% 871,6 18% 0% Top-line performance 2021 Revenue 2022 FX adjusted revenue growth 2023 • Strong performance within all customer segments, products and geographies Revenue by markets Revenue Direct Sales vs • Strong growth in the direct markets, today US, 2023 Par
Slide 70: Gross margin development
Gross Profit & Margin (SEK million) 68% Gross margin 66% 65% development • Investing in sales expansion and training to build awareness has been a success 1 094 • Strong performance within all customer segments, products and geographies 788 • Strong growth in the direct markets, today US, Sweden, 57
Slide 71: Profitable growth
2021 2022 2023 2021 2022 2023 36% 37% 36% 12% 11% 10% 318 451 585 102 138 163 Profitable growth Selling expenses Selling expenses/Revenue R&D expenses R&D expenses/Revenue • Sales price increase and more normalized component charges and freight has improved the gross margin • Invest in future sales
Slide 72: Cash-flow friendly business model
Cash Flow Development (SEK million) 197 200 161 200 145 150 107 150 100 100 50 50 0 0 -50 -26 -50 -100 -100 Cash-flow friendly -150 -200 -150 -200 business model -250 -250 -234 -300 -300 2021 2022 2023 • 90% of device sales recognized and 10% deferred for Cash flow after continues investments Cash a
Slide 73: Updated financial targets
Updated financial targets Time horizon 3-4 years 20% > 15% > 40% Growth Profitability Dividend Policy On average, grow revenue by To deliver an EBIT margin that Distribute at least 40% of 20% per year adjusted for reaches and exceeds 15% available net profits to currency effects, including sharehold

Tobii Dynavox — Investor Day (February 2024) on 6ix

Dynavox Group Ab — Tobii Dynavox — Investor Day (February 2024)

Slide 1: Capital Markets Day

Slide 2: Important information

Slide 3: Fredrik Ruben and Linda Tybring

Slide 4: Tara Rudnicki and Nils Normell

Slide 5: Today's agenda

Slide 6: © 2024 Tobii Dynavox AB (Publ)

Slide 7: New financial targets

Slide 8: Updated financial targets

Slide 9: Brock & his family; Emily

Slide 10: © 2024 Tobii Dynavox AB (Publ)

Slide 11: Brock's mother testimonial

Slide 12: Scott, user with ALS testimonial

Slide 13: About Tobii Dynavox

Slide 14: Our history

Slide 15: Our Vision and Mission

Slide 16: Our purpose

Slide 17: Customer landscape

Slide 18: © 2024 Tobii Dynavox AB (Publ)

Slide 19: Our comprehensive communication solution

Slide 20: Our global reach

Slide 21: Tobii Dynavox snapshot

Slide 22: Experienced senior executives and Board of Directors

Slide 23: Positioned for sustainable growth

Slide 24: Market fundamentals

Slide 25: Communication aids in the assistive technologies market

Slide 26: Meet Emily

Slide 27: Customer landscape

Slide 28: Users

Slide 29: Prescribers

Slide 30: Funders

Slide 31: Why don't you just serve more people?

Slide 32: How can we reach 50 million users

Slide 33: Solution offering

Slide 34: Solutions support a range of needs

Slide 35: © 2024 Tobii Dynavox AB (Publ)

Slide 36: © 2024 Tobii Dynavox AB (Publ)

Slide 37: © 2024 Tobii Dynavox AB (Publ)

Slide 38: © 2024 Tobii Dynavox AB (Publ)

Slide 39: © 2024 Tobii Dynavox AB (Publ)

Slide 40: © 2024 Tobii Dynavox AB (Publ)

Slide 41: © 2024 Tobii Dynavox AB (Publ)

Slide 42: © 2024 Tobii Dynavox AB (Publ)

Slide 43: © 2024 Tobii Dynavox AB (Publ)

Slide 44: Break and demo

Slide 45: Strategy for profitable growth

Slide 46: Growth journey

Slide 47: © 2024 Tobii Dynavox AB (Publ)

Slide 48: Market expertise makes a difference

Slide 49: US market profile

Slide 50: US growth journey

Slide 51: Growth lever 1: Education – Splitting territories

Slide 52: Revenue increased with territory splits

Slide 53: A scalable model that delivers results

Slide 54: Recent territory split – Geographic

Slide 55: Recent territory split – Demographic

Slide 56: Growth lever 2: Funding

Slide 57: Field reps spent 30% of time supporting funding

Slide 58: Field reps spend most of their time with prescribers

Slide 59: Contracts & expertise save time & create value

Slide 60: Appealing funding denials creates more value

Slide 61: The US is our biggest market today and tremendously underserved

Slide 62: Growth via acquisitions – main target types

Slide 63: Growth lever 3: Partnerships – Acquiring local presence

Slide 64: Local presence around the world

Slide 65: Organic growth post acquisition

Slide 66: Investing in local presence

Slide 67: Financial performance and targets

Slide 68: Introduction to financials

Slide 69: Top-line performance

Slide 70: Gross margin development

Slide 71: Profitable growth

Slide 72: Cash-flow friendly business model

Slide 73: Updated financial targets

Slide 74: Concluding remarks

Slide 75: Q&A

Slide 76: Thank you!