Dynavox Group Ab · OMXSTO:DYVOX

Dynavox Group Ab — Tobii Dynavox — Investor Day (November 2021)

68 slides from Dynavox Group Ab's investor day presentation, Nov 30, 2021

Slide 1: Capital Markets Day
Capital Markets Day November 30, 2021
Slide 2: Important information
Important information IMPORTANT: You must read the following before continuing. The following applies to this document, the oral presentation of the information in this document by Tobii Dynavox AB (the “Company”) or any person on behalf of the Company, and any question-and-answer session that follo
Slide 3: Fredrik Ruben, CEO and Linda Tybring, CFO
Fredrik Ruben Linda Tybring Chief Executive Officer Chief Financial Officer 2021-11-29 3 © 2021 Tobii Dynavox AB
Slide 4: Today's Agenda
[10:00] 09:30 Welcome [10:05] 09:40 Introduction to Tobii Dynavox Today’s Agenda [10:30] Market fundamentals [10:45] Solution offering [11:00] 10.40 Break [11:15] 11:10 Strategy for profitable growth [12:00] Financial performance and targets [12:15] Concluding remarks [13:00] 12:00 Q&A 2021-11-29 4
Slide 5: The Spin-Off
The Spin-Off Tobii Dynavox AB (publ) & Tobii AB (publ) as two world leading separate companies 2001 One company, 2019 2021 Split of companies, TD 9 Dec Tobii Dynavox’s 3 autonomous offering as Lex Asea, no 2021 first day of trading BUs since 2001 Tobii Dynavox emission incorporated 2021-11-29 5
Slide 6: Introduction to Tobii Dynavox
The World Leader in Assistive Technology for Communication Introduction to Tobii Dynavox A World leader in assistive technology 2021-11-29 6 © 2021 Tobii Dynavox AB
Slide 7: Power to be you
”Power to be you” Tobii Dynavox’s mission is to empower people with disabilities to do what they once did, or never thought possible. 2021-11-29 7 © 2021 Tobii Dynavox AB
Slide 9: Communication aids provide benefits to several user groups – significant unmet need
Acquired a condition • ALS Communication aids provide • Aphasia benefits to several user groups • Multiple sclerosis – significant unmet need • Huntington’s Prevalence Incidence • Parkinson’s Million individuals globally1 Million individuals globally1 ~200 • Spinal cord injury Born with a condition
Slide 10: Fully integrated solution
1 1 Content Covid Trump Synthetic voices Brexit Wearing Mask Fully integrated solution TD Snap TD Communicator 5 Boardmaker 2 Software 1 2 Content Software PCEye TD Pilot I-Series I-110 (medical grade) (medical grade) (medical grade) 3 Devices EyeMob ile 3 5 Implementation Devices & Support 4 Assess
Slide 11: History of Tobii Dynavox
History of Tobii Dynavox Acquisition of Dynavox by Tobii in 2014 Acquisition of Tobii Dynavox becomes Add-on acquisition Spin-off from Tobii and start of development phase Acapela group a stand-alone listed Integration company 1983 = 1 2014 2021 Tobii Assistive Technology New Introduces the Introduc
Slide 12: Global presence
Global presence ~21% ~75% Average FTE ~4% 464 469 448 ~1% Tobii Dynavox location 2017 2018 2019 2020 Sep '21 % FTE split as of Sep ‘21 2021-11-29 12 © 2021 Tobii Dynavox AB
Slide 13: Tobii Dynavox snapshot
Tobii Dynavox snapshot ~11%1 SEK 127m >400 ~65 2020 SEK 895m ~470 Organic net sales EBIT Agreements with Markets Net sales FTEs CAGR 2017-19 (14% Margin) insurance companies served Revenue by customer ~60% ~30% ~10% Public funding Private insurance Private clients category Leading global 36% 70% 25%
Slide 14: Experienced senior executives and Board of Directors
Experienced senior executives and Board of Directors Senior executives Board of Directors Fredrik Ruben Tara Rudnicki Åsa Hedin Chief Executive Officer President, Market Unit North Chair of the Board American Linda Tybring Kristen Cook Chief Financial Officer Chief Marketing Officer Henrik Eskilsson
Slide 15: Positioned for sustainable growth in a vital industry
Positioned for sustainable growth in a vital industry Life changing and revolutionary benefits 1 to end users and the world around them Global leader in a niche market 2 underpinned by secular growth trends Most comprehensive solution provider 3 during each step of end users’ journey Track-record of
Slide 16: Market fundamentals
Market fundamentals Augmentative and Alternative Communication (AAC) industry 2021-11-29 16 © 2021 Tobii Dynavox AB
Slide 17: Focus on high-tech aspects of the AAC industry
Tobii Dynavox is focusing on the high-tech aspects of the Augmentative and Alternative Communication (AAC) industry Assistive technologies and solutions Mobility aids Low vision/blind aids Hearing aids AAC Low-tech AAC High-tech AAC Computer access & accessories Software & apps Speech generating dev
Slide 18: AAC market size and key drivers
AAC market size and key drivers1 Drivers 2% Prevalence Incidence Total Million individuals globally Million individuals globally US$ 4.7bn Addressable Market ▪ Demographics ~200 TAM ▪ Healthcare systems Increasing 7% penetration Serviceable Addressable Market ▪ Awareness US$ ~670m ▪ Reimbursement Ho
Slide 19: Key for AAC success is to increase awareness
Key for AAC success is to increase awareness… • Low awareness of the benefits of AAC solutions Family and among professionals (e.g. SLPs) and users community • Even in developed markets the SLPs education Policy makers curriculum seldom includes AAC • Tobii Dynavox works to improve the ecosystem in
Slide 20: …and to improve AAC funding infrastructure globally
…and to improve AAC funding infrastructure globally USA ▪ USA • In most of the developed countries, AAC is a legal right supported by varying degrees of funding ▪ Norway ▪ Iceland ▪ Sweden ▪ Denmark Other • In the most well-funded countries, such as Norway, all well- ▪ Slovenia ▪ Australia ▪ Netherl
Slide 21: Where will the AAC market growth come from?
Where will the AAC market growth come from? Market by tier1 Market by condition1 AAC, serviceable obtainable market (SOM) AAC, serviceable obtainable market (SOM) US$m CAGR ‘20-30 US$m CAGR ‘20-30 545 545 43 36% +9% 110 6% +9% 257 11% 138 19% 228 228 2 61 87 25 288 7% 255 6% 141 141 2020 2030 2020 2
Slide 22: First time sales continue to drive market growth
First time sales continue Replacement sales to account for ~1/3 of total market growth to 2030 to drive market growth • Market increase over the next 10 years expected to still be predominantly driven by first-time sales as markets are still under penetrated AAC, serviceable obtainable market (SOM)1
Slide 23: Tobii Dynavox – global leader by market share
Tobii Dynavox – global Global leader by market share AAC market leader1 Key players in the AAC competitive landscape 36% are headquartered in the US or in Western Overall AAC market share Europe and only a few have global presence Consumer tech sector • Tobii Dynavox along with the second largest co
Slide 24: Market fundamentals: Special education
Market fundamentals Special education 2021-11-29 24 © 2021 Tobii Dynavox AB
Slide 25: What is Special Education?
Classroom picture What is Special Education? • Special education is designed for children who require additional support and adaptive pedagogical methods • Substantial overlap and synergies with the AAC segment Special education varies between countries but PCS Symbols can be divided in three catego
Slide 26: Special education market context
Special education market Special education ecosystem context Decision makers • Parents • Special education teachers Symbol-based special education software solutions can be • SLPs categorized in three segments • General education teachers • Educational assistants • Educational administrators • Instr
Slide 27: Special education market size and key drivers
Special education market size and key drivers1 Drivers 6% Total Addressable Market US$ ~900m • Demographics TAM Increasing penetration 12% • Higher spend on education Serviceable Addressable Market US$ ~200m • Educational system development SAM • Localization of software Increasing 19% penetration •
Slide 28: Special education market estimated to grow ~19% annually
Special education market estimated to grow ~19% annually1 • Increasing awareness of special US$m 230 CAGR 2020-’30 education benefits 24 70% • Growing knowledge of special education software solutions 85 25% +19% • Increasing willingness to adopt to subscription model 121 14% 41 9 32 2020 2030 USA O
Slide 29: Tobii Dynavox – second largest player in special education market
Tobii Dynavox – Second Limited number of global players as most markets demand localized solutions in terms of largest player in the special language and adapted features education market1 • Symbol-based special education software differ in terms of complexity of the solution • Many competitors with
Slide 31: Complete offering serving the full stakeholder ecosystem
Complete offering serving the full stakeholder ecosystem User SLP ✓ Ability to communicate with Family family and friends ✓ Enhanced independence ✓ Ability to keep/get job ✓ Reduced depression/ self-harm Payer Education 2021-11-29 31 © 2021 Tobii Dynavox AB
Slide 32: Fully integrated solution
1 1 Content Covid Trump Synthetic voices Brexit Wearing Mask Fully integrated solution TD Snap TD Communicator 5 Boardmaker 2 Software 1 2 Content Software PCEye TD Pilot I-Series I-110 (medical grade) (medical grade) (medical grade) 3 Devices EyeMob ile 3 5 Implementation Devices & Support 4 Assess
Slide 33: Content that covers all communication needs
Assessment Implementation Content | Software | Devices | | & Funding & Support Content that covers all communication needs Symbols Language Voice PCS – constantly created, updated Core First – comprehensive, Acapela – synthetic voice solutions and maintained proprietary symbols evidence-based langua
Slide 34: TD Snap
Assessment Implementation Content | Software | Devices | | & Funding & Support TD Snap Software for people born with a condition • TD Snap is a software enabling symbol- to-speech communication • Moves seamlessly from simple single word communication to full vocabulary of tens of thousands of words
Slide 35: TD Communicator
Assessment Implementation Content | Software | Devices | | & Funding & Support TD Communicator Software for people who have acquired a condition • Comprehensive text and symbol-based AAC solution offering communication for people with a wide range of language disabilities • Converts text and symbols
Slide 36: Boardmaker
Assessment Implementation Content | Software | Devices | | & Funding & Support Boardmaker Software as a Service (SaaS) for special education Provides support in: • Communication – engaging in conversation • Behaviour – concrete tasks, complex strategies, rewards progress • Participation – engaging t
Slide 37: Tobii Dynavox's device classes
Assessment Implementation Content | Software | Devices | | & Funding & Support Tobii Dynavox’s device classes Medical grade high-tech Eye tracking Touch access Hybrid high-tech Eye tracking Touch access TD Pilot I-Series I-110 Price Purpose-built for AAC and meets the definition for medical equipmen
Slide 40: Assessment is critical as user needs differ
Assessment Implementation Content | Software | Devices | | & Funding & Support Assessment is critical as Tobii Dynavox supports the assessment process user needs differ Solutions consultants Com- Social Condition munication Cognitive Physical Interaction • Spread awareness and share knowledge of Tob
Slide 41: Funding overview
Assessment Implementation Content | Software | Devices | | & Funding & Support Funding overview Private Insurance companies • Tobii Dynavox employs ~50 funding experts and have unmatched access to reimbursement through close contact with >400 private insurance companies and all major public funding
Slide 42: Funding process
Assessment Implementation Content | Software | Devices | | & Funding & Support Funding process • Funding process complexity and diverse requirements result in a highly non-standardized and manual process • Any missing information needs to be collected from users/SLPs • Funding consultants ensure sub
Slide 43: Implementation and support
Assessment Implementation Content | Software | Devices | | & Funding & Support Implementation and support Training Support TD Care • Brochures, product information Live training sheets and website Tobii Dynavox communication devices come with a 24-month warranty from delivery ✓ Unlimited protection
Slide 44: Tobii Dynavox's Community
Assessment Implementation Content | Software | Devices | | & Funding & Support Tobii Dynavox’s Community Boardmaker Community ~65,000 ~7,400 ~40 avg. • Search 90,000+ free, ready-made print and interactive activities Followers Community members Daily comments • Created and shared among 500,000 Board
Slide 47: Inclusion & Sustainability by design
Great place to work Inclusion & Sustainability by design Our solutions actively address the UN’s sustainable development goals ✓ Positive impact on the well-being of individuals with disabilities ✓ Improving quality of education for student with special education needs Consistently ranked among the
Slide 49: Key strategic pillars supporting growth ambitions
Key strategic pillars supporting growth ambitions 1 Increase knowledge and awareness 2 Grow and develop the sales- and training organization 3 Expand to new markets and user groups 4 Drive innovation and offer leading solutions 5 Improve the reimbursement process 6 Acquire complementary channels and
Slide 50: 1. Increase knowledge and awareness of the solutions
1. Increase knowledge and awareness of the solutions • Low percentage of people with access to AAC • Inadequate knowledge of the potential and value that AAC creates for the individual and society • In 2020 alone, Tobii Dynavox trained +100,000 speech therapists, prescribers and other affected parti
Slide 51: 2. Grow and develop the sales- and training organization
SALES CASE STUDY: US TERRITORY SPLIT Florida NE / Territory Ohio Maryland / DC Gulf Coast Pre Post Pre Post Pre Post Number of 2. Grow and develop the employees (#) 1 3 2 3 1 2 sales- and training organization Revenue growth1 • Tobii Dynavox solutions often require physical testing, Before After Bef
Slide 52: 3. Expand to new markets and user groups
3. Expand to new Expand global footprint through localized and increased direct presence in more markets markets and user groups • New geographic markets offers substantial growth potential • Strengthening presence in new markets as systems for prescribing and providing reimbursement for AAC are dev
Slide 53: 4. Drive innovation and offer leading solutions
4. Drive innovation and offer leading solutions • Offers innovation-leading solutions • Continuously advancing development with a focus on simplicity and the right functionality, while maintaining product differentiation • In-house development of content and technology creating cost, quality advanta
Slide 54: 5. Improving the reimbursement process
5. Improving the Average cycle time for funded orders (# days) reimbursement process • Manages the reimbursement process in countries with direct sales (US, UK, Norway and Sweden) • Extensive experience in helping users through the reimbursement process • Aims to export its knowledge and experience
Slide 55: 6. Acquire complementary channels and products
6. Acquire Well-defined pipeline of near-term targets of which several in ongoing discussions complementary channels and products Add presence Partners/Resellers currently • AAC market highly fragmented with several targets to selling our solutions in the local market/geography pursue • Complement c
Slide 56: Financial performance and targets
Financial performance and targets All numbers can be found in released prospectus and in Tobii’s earnings reports 2021-11-29 56 © 2021 Tobii Dynavox AB
Slide 57: Introduction to financials
Introduction to financials • Track record of delivering profitable growth following complete revamp of solutions portfolio • Recent financial performance impacted by Covid- 19 and supply chain disruptions • Strong underlying business set to grow and deliver on financial targets • Tobii Dynavox repor
Slide 58: Stable top-line performance
Stable top-line performance Revenue split by geography Other North America • Direct sales mainly in the US, UK, Sweden and Norway Europe • Strong momentum in the business, with the I-Series serving as a driver 75% of 2020 sales • Delivery and logistic challenges as well as currency from the US fluct
Slide 59: Profitability upside potential from operating leverage
Gross profit and margin SEKm 65% 66% 66% 66% Profitability upside potential 594 592 from operating leverage 436 414 • Cost base 2020 impacted by Covid-19 (work reduction, 2019 2020 9m '20 9m '21 government grants and lower travel expenditures) Gross Profit Gross margin % • Delivery and logistic chal
Slide 60: Well invested for the future
Research and development, capitalized SEKm Well invested for the future 86 78 60 55 • Investments in research and development has lead to several innovations over the years, strengthening margins and increasing sales 2019 2020 9m '20 9m '21 • Capitalized research and development costs are amortized
Slide 61: Attractive net working capital profile
Attractive net working capital Operating assets SEKm profile 250 40 195 228 221 60 58 63 30 • 90% of device sales recognized and 10% deferred for 40 41 40 future support commitments 147 125 127 123 • Special education software based on subscription model, typical customer prepays 6-18 months 2019 20
Slide 62: Financial position
Events post Q3 • New 550 SEKm term loan Financial position • New 150 SEKm revolving credit facility related to acquisition (undrawn) • Repayment of debt to Tobii AB (257 SEKm) • Events post Q3 will have an impact on net debt • Acquisition of perpetual license to use the name “Tobii” in combination p
Slide 63: Long-term financial targets
Long-term financial targets >10% >15% Growth Profitability To increase currency-adjusted revenue by more To achieve and maintain an EBIT than 10 percent on average per year margin in excess of 15 percent Dividend Policy To primarily reinvest the Company's profit and use it for several growth opportu
Slide 65: Power to be you
”Power to be you” Tobii Dynavox’s mission is to empower people with disabilities to do what they once did, or never thought possible. 2021-11-29 65 © 2021 Tobii Dynavox AB
Slide 66: Positioned for sustainable growth in a vital industry
Positioned for sustainable growth in a vital industry Life changing and revolutionary benefits 1 to end users and the world around them Global leader in a niche market 2 underpinned by secular growth trends Most comprehensive solution provider 3 during each step of end users’ journey Track-record of

Tobii Dynavox — Investor Day (November 2021) on 6ix

Dynavox Group Ab — Tobii Dynavox — Investor Day (November 2021)

Slide 1: Capital Markets Day

Slide 2: Important information

Slide 3: Fredrik Ruben, CEO and Linda Tybring, CFO

Slide 4: Today's Agenda

Slide 5: The Spin-Off

Slide 6: Introduction to Tobii Dynavox

Slide 7: Power to be you

Slide 8: © 2021 Tobii Dynavox AB

Slide 9: Communication aids provide benefits to several user groups – significant unmet need

Slide 10: Fully integrated solution

Slide 11: History of Tobii Dynavox

Slide 12: Global presence

Slide 13: Tobii Dynavox snapshot

Slide 14: Experienced senior executives and Board of Directors

Slide 15: Positioned for sustainable growth in a vital industry

Slide 16: Market fundamentals

Slide 17: Focus on high-tech aspects of the AAC industry

Slide 18: AAC market size and key drivers

Slide 19: Key for AAC success is to increase awareness

Slide 20: …and to improve AAC funding infrastructure globally

Slide 21: Where will the AAC market growth come from?

Slide 22: First time sales continue to drive market growth

Slide 23: Tobii Dynavox – global leader by market share

Slide 24: Market fundamentals: Special education

Slide 25: What is Special Education?

Slide 26: Special education market context

Slide 27: Special education market size and key drivers

Slide 28: Special education market estimated to grow ~19% annually

Slide 29: Tobii Dynavox – second largest player in special education market

Slide 30: Solution offering

Slide 31: Complete offering serving the full stakeholder ecosystem

Slide 32: Fully integrated solution

Slide 33: Content that covers all communication needs

Slide 34: TD Snap

Slide 35: TD Communicator

Slide 36: Boardmaker

Slide 37: Tobii Dynavox's device classes

Slide 38: © 2021 Tobii Dynavox AB

Slide 39: © 2021 Tobii Dynavox AB

Slide 40: Assessment is critical as user needs differ

Slide 41: Funding overview

Slide 42: Funding process

Slide 43: Implementation and support

Slide 44: Tobii Dynavox's Community

Slide 45: Break and Demo

Slide 46: Strategy for profitable growth

Slide 47: Inclusion & Sustainability by design

Slide 48: The Team

Slide 49: Key strategic pillars supporting growth ambitions

Slide 50: 1. Increase knowledge and awareness of the solutions

Slide 51: 2. Grow and develop the sales- and training organization

Slide 52: 3. Expand to new markets and user groups

Slide 53: 4. Drive innovation and offer leading solutions

Slide 54: 5. Improving the reimbursement process

Slide 55: 6. Acquire complementary channels and products

Slide 56: Financial performance and targets

Slide 57: Introduction to financials

Slide 58: Stable top-line performance

Slide 59: Profitability upside potential from operating leverage

Slide 60: Well invested for the future

Slide 61: Attractive net working capital profile

Slide 62: Financial position

Slide 63: Long-term financial targets

Slide 64: Concluding remarks

Slide 65: Power to be you

Slide 66: Positioned for sustainable growth in a vital industry

Slide 67: Q&A

Slide 68: Thank you!