Rockley Photonics Holdings Ltd
Rockley Photonics — SPAC Merger (March 2021)
46 slides from Rockley Photonics's SPAC merger presentation, Mar 19, 2021
Slide 1: March 2021 Investor Presentation
March 2021 Investor Presentation
Slide 2: Notice to Recipient
Notice to Recipient This investor presentation (“Investor Presentation”) is strictly private and confidential and is intended solely for the information of the Recipients. It is not an invitation for public subscription and should not be reproduced or circulated or used for any purpose other than as
Slide 3: Notice to Recipient (Cont'd)
Notice to Recipient (Cont’d) This Investor Presentation does not contain all material information concerning SC Health, Rockley Photonics or any parent company of either company, or any securities of any such entity, and the information set forth in this document is subject to change without notice.
Slide 4: Presenters
Presenters ____________________ (1)Order of the British Empire. Dr. Andrew Rickman, OBE(1) Founder, CEO and Chairman, Rockley Photonics Founder & CEO of Bookham, the first silicon photonics company Chairman of Kotura (acquired by Mellanox) Awarded OBE(1) in the Queen’s Millennium Honors Mahesh Karan
Slide 5: SIN Capital is a Premier Multi-Asset Investment Firm
SIN Capital is a Premier Multi-Asset Investment Firm with an Extensive Track Record of Value Creation Pan-Asia Multi-asset Investment Firm with a Differentiated Investment Approach Proven Investor, Business Builder, Owner and Operator Across the Healthcare Value Chain Building Fullerton Health into
Slide 6: Transaction Overview
Transaction Overview Sources & Uses ($M) Pro Forma Valuation ($M) Pro Forma Ownership(1) SC Health and Rockley Photonics are partnering to accelerate Rockley’s product development and commercialization outlook ____________________ Adjusted for the conversion of Class B ordinary shares of SC Health h
Slide 7: Agenda
Agenda Rockley Photonics Overview Investment Highlights Financial Overview Business Details
Slide 8: Rockley Photonics at a Glance
Rockley Photonics at a Glance Rockley has developed a unique sensing platform targeting applications in consumer health and wellness à driving an exponential increase in application capabilities for non-invasive, multi-modal biomarker monitoring Built on its highly disruptive silicon photonics techn
Slide 9: Rockley Spectra-Sense Module
Rockley Spectra-Sense Module Rockley’s Unique Technology Solution Optical Sensing Frontside Electrical Interface Backside Photonic Integrated Circuits Electronic Pin Contacts ASIC Controller, MUX, AFE, Drivers 3 4 3 4 1 2 Infrared Visible Spectrum 1 2 Rockley’s proprietary clinic-on-the-wrist module
Slide 10: Actionable Insights from Nutrition to Health
Actionable Insights from Nutrition to Health 8:32pm SAT 2/13 Rockley enables continuous health and wellness monitoring of multiple biomarkers, paving the way for nextgen consumer electronics
Slide 11: The Full-Stack Rockley Platform
The Full-Stack Rockley Platform Electronic Integrated Circuits (ASICs) Photonic + Electronic Co-Packaging System Architecture & Hardware Design Biosensing Algorithms and AI Cloud Analytics The Full Stack Rockley Platform Firmware / Software Photonic Integrated Circuits in Silicon with Integrated III
Slide 12: Rockley's Commercialization Roadmap
Rockley’s Commercialization Roadmap Additional Avenues for Growth Immediate Focus Near-Term Commercial Opportunity Current commercial focus of the company and have built out complete vertical capability Underlying technology platform leverages development in other optical fields Engaged or contracte
Slide 13: Rockley's Objective: Next Frontier of Consumer Devices and Health
Rockley’s Objective is to Play a Pivotal Role in The Next Frontier of Consumer Devices and Health and Wellness ____________________ (1)“Tim Cook Pivots to Fitness” by Michael Roberts on Outside Magazine. https://www.outsideonline.com/2420733/tim-cook-apple-fitness-wellness-future. (2)“Amazon is buil
Slide 14: Agenda
Agenda Rockley Photonics Overview Investment Highlights Financial Overview Business Details
Slide 15: Investment Highlights
Investment Highlights Massive Consumer Health Market Opportunity: Significantly increased consumer focus on health and wellness – smart wearable technology rapidly proliferating with emerging monitoring capabilities 1 Industry-Revolutionizing Technology Platform: Unique, differentiated and IP protec
Slide 16: Massive Emerging Market Opportunity with Compelling Healthcare Technology Need
Massive Emerging Market Opportunity with Compelling Healthcare Technology Need 1 $48B+ TAM in 2025 Large market opportunity as growing universe of healthcare monitoring devices incorporate additional sensing capabilities Wearables Smartphones Point-of-Care IoT Devices Hearables Smartpatches Smartban
Slide 17: The Emerging Healthcare Need Is Driving a Massive Opportunity
The Emerging Healthcare Need Is Driving a Massive Opportunity 1 ____________________ (1)Existing Technology Solutions: 1. PPG – simple technique from which vitals are extracted 2. IR spectroscopy – Ability to interrogate many complex bio-markers of chronic conditions and other diseases. Strong marke
Slide 18: The Rockley Solution: Multi-Function Clinic-on-the-Wrist Capability
The Rockley Solution: Multi-Function Clinic-on-the-Wrist Capability Current Smartwatch Technology ✘ Limited sensor capabilities ✘ Legacy LED technology ✘ Low resolution & accuracy Heart Rate & ECG Blood Oxygen Single sensor for multi-modal biochemical / biophysical marker monitoring Functionality of
Slide 19: Validated by Leading Blue-Chip Customers
Rockley’s existing commercial relationships with leading consumer device customers validate its unique technology and business opportunity à near-term commercial focus is on a robust pipeline of consumer device, medical device and life sciences companies Validated by Leading Blue-Chip Customers 3 En
Slide 20: Capex-light and Scalable Manufacturing Model
Capex-light and Scalable Manufacturing Model 4 Silicon Photonic Integrated Circuits and Wafer Scale Integration Auto, Consumer & Health qualified 400K+ wafers per year capacity High-Volume IC / Wafer Foundry III-V Semiconductor Active Optics Telecom & Consumer qualified Large wafer scale, fully auto
Slide 21: Multiple Avenues for Further Growth and Upside
Multiple Avenues for Further Growth and Upside Avenues for Growth Beyond Consumer Health Health and Wellness Revenue Projections 2020A-2024E ($M) 5 1,125 426 79 40 21 Medical Device and Predictive Analytics Data Center Connectivity JV with Hengtong Group Others Advanced Sensing Communication and Com
Slide 22: World Class Management Team with Track Record of Leading Public Technology Companies
World Class Management Team with Track Record of Leading Public Technology Companies 6 ____________________ (1)Order of the British Empire. Mahesh Karanth Chief Financial Officer CFO, Enlightened CFO, Invensense (acquired by TDK) Partner at Ernst & Young Various senior role at CPQ and HP Amit Nagra
Slide 23: Agenda
Agenda Rockley Photonics Overview Investment Highlights Financial Overview Business Details
Slide 24: Evolution of Rockley's Cutting-Edge Technology Platform
Evolution of Rockley’s Cutting-Edge Technology Platform ____________________ (1) Via SIG-i Capital, a fund manager partially owned by Credit Suisse. (2) Funding history includes fundraising, non-recurring revenue, government grants and subsidies. Fab Agreement and team installed New Partnerships: VT
Slide 25: Product Development and Commercial Roadmap
Product Development and Commercial Roadmap H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 Chipset High volume consumer product Basic Module Hearable Low-end smart watch/band Mobile Advanced Module High-end smart watch High-end smart band Mobile (high-end / niche) Rockley Photonics Device Stand alone / medical grade
Slide 26: Product Applications in Wellness & Healthcare
Product Applications in Wellness & Healthcare Extended IR Spectroscopy Advanced Algorithms Carbon Monoxide Alcohol Continuous Glucose Monitoring Lactate PPG Visible & IR Spectroscopy Blood Oxygen Hydration Heart Rate / HR Variability Breath Rate Blood Pressure Core Body Temperature Glucose indicator
Slide 27: Rockley's Module Has the Broadest Biomarker Detection Capabilities
Rockley’s Module Has the Broadest Biomarker Detection Capabilities Biomarkers Detection HR / HRV ü ü ü ü û Pulse Oximetry ü ü ü û û BP ü ü O O O Breath rate ü O O O O Body temp ü O O O ü Body hydration ü O O O O Blood flow ü O O O O Hemoglobin Constituent ü O O O O Blood alcohol ü O O O O Lactate ü
Slide 28: Engagement with Blue Chip Mobile OEMs Validate the Commercial Opportunity
Engagement with Blue Chip Mobile OEMs Validate the Commercial Opportunity of Rockley’s Module Projected Revenue ($M) Long standing development and supply agreement Over $70M committed to date Leading producer globally with strong Asia channel MOU agreement signed Strong smart phone channel and emerg
Slide 29: The Consumer Health Commercial Opportunity is Underpinned by a Massive Market
The Consumer Health Commercial Opportunity is Underpinned by a Massive Market 0.0% 0.0% 11.4% 0.5% 0.7% 0.0% 20.9% 1.9% 0.0% 1.6% 0.1% 4.0% Total Serviceable Available Market(1)(2) (in $B) ’s Market Penetration Wearables Mobile Total Penetration Sensitivities Analysis for 2024E Revenue(2) (in $M) __
Slide 30: Rockley's technology offers MedTech OEMs enhanced tools for disease detection
Rockley’s technology capabilities offer MedTech OEMs and patients enhanced tools for potential disease detection and management Impacting Disease Prevention and Management by Partnering with MedTech Companies US Prevalence (M) US Prevalence of Major Diseases(1) Heart Cancer Liver Kidney Lung Brain P
Slide 31: Rockley's Module Can Detect Numerous Critical Biomarkers
Rockley’s Module Can Detect Numerous Critical Biomarkers to Assist Disease Detection & Management IR Diagnostics assistance indicator Visible Coronary Arterial Disease Diabetes Chronic Kidney Disease Covid-19 Albumin ü Urea ü Creatinine ü Glucose ü ü ü ü Lactate ü Core body temp ü Hydration ü ü ü Al
Slide 32: Technology Protected by Deep Moat of Patents, Know-How and Trade Secrets
Revolutionary technology is protected by deep moat of patents, know-how and trade secrets covering numerous domains Rockley Benefits from Several Hard-to-Replicate Strengths Creating a Competitive Moat Technology & Process Complexity End-to-end control over design, manufacturing and packaging proces
Slide 33: Global Development & Manufacturing Ecosystem
Global Development & Manufacturing Ecosystem Engineering / Ops HQ In-House R&D Facility UNITED KINGDOM Corporate HQ III-V and SiPh process engineering PASADENA, USA Engineering HQ SiPh/III-V & IC design process, packaging, and operations Corporate HQ IRVINE, USA Healthcare applications laboratory SA
Slide 34: Agenda
Agenda Rockley Photonics Overview Business Details Financial Overview Investment Highlights
Slide 35: Total Revenue Outlook
Total Revenue Outlook (Revenue in $M) Prior to 2022, revenue is mostly driven by NRE Significant revenue increase from 2023 onwards, on the back of commercial adoption by consumer technology manufacturers Revenue is expected to cross the $1B in 2024 driven by sensor volume ramp up with contracted cu
Slide 36: P&L Outlook
P&L Outlook ____________________ Free Cash Flow = Operating Cash Flow – Capital Expenditure. Revenue growth accelerates in 2023E as commercial sensor delivery ramps up Gross and EBITDA margins expand as efficiencies from mass production are realized Limited CAPEX requirement of US$10M – US$50M per a
Slide 37: Improved Growth and Margins Post-Commercialization
Improved Growth and Margins Post-Commercialization Increased Growth Potential Higher Margins Market Penetration(1) (%) Revenue Growth (%) Product Margin(2) (%) Gross Margin (%) EBITDA Margin (%) Number of Expected Customers ____________________ Share of serviceable available market of wearables. Ble
Slide 38: Public Peer Operational Benchmarking
Public Peer Operational Benchmarking Revenue CAGR CY2022E-CY2024E CY2020E-CY2022E Median: 95.8% Mean: 116.4% Median: 14.6% Mean: 15.5% Recent SPAC Mergers Medical Devices Semiconductors Median: 20.5% Mean: 30.2% ____________________ Source: Company filings, Factset and Wall Street Research. Note: Ma
Slide 39: Valuation Benchmarking
Valuation Benchmarking EV / Revenue EV / CY2024E Revenue EV / CY2022E Revenue Median: 6.3x Mean: 8.8x Median: 3.2x Mean: 4.3x Median: 9.7x Mean: 12.0x ____________________ Source: Company filings, Factset and Wall Street Research. Note: Market data as of March 12, 2021. Figures as per Investor Prese
Slide 40: Transaction Priced At Discount To Peer Multiples
Transaction Priced At Discount To Peer Multiples 73% Discount 53% Discount Pricing / Valuation Approach Summary (in $M) 2024E Revenue: $1,125M 3.0x – 5.0x 2024E Revenue Discounted back 3 years at 20% discount rate 1.1x 2024E Revenue Implied Future Enterprise Values derived by applying a range of 3.0
Slide 41: Thank You
SS Thank You
Slide 42: Appendix
Appendix PHOTONICS
Slide 43: Historical P&L and 4-Year Outlook
Historical P&L and 4-Year Outlook ____________________ Free Cash Flow = Operating Cash Flow – Capital Expenditure. (in $M) FY 2020A FY 2021E FY 2022E FY 2023E FY 2024E Product Revenue 0.0 0.0 15.8 405.5 1125.1 Sample revenue & NRE Revenue 20.6 40.5 62.8 21.0 0.0 Total Revenue 20.6 40.5 78.6 426.5 11
Slide 44: Comparable Companies
Comparable Companies ____________________ Source: Company filings, Factset and Wall Street Research. Note: Market data as of March 12, 2021. Figures as per Investor Presentation since no broker estimates are available yet. Pre-announcement of acquisition by Marvell.
Slide 45: Glossary
Glossary ASIC – Application-Specific Integrated Circuit AFE – Analog front-end BP – Blood Pressure CAD – Coronary Artery Disease CGM – Continuous Glucose Monitoring CHF – Congestive Heart Failure CKD – Chronic Kidney disease COPD – Chronic Obstructive Pulmonary Disease ECG – Electrocardiogram EV – E
Slide 46: Photonics as pervasive as micro-electronics
Photonics as pervasive as micro-electronics