Slide 1: Fourth quarter 2023 Earnings presentation
Fourth quarter 2023 Earnings presentation 1 Fourth quarter 2023 - Earnings presentation 27 February 2024
Slide 2: Disclaimer
Disclaimer This presentation (the "Presentation") has been nor does any of them accept any responsibility for No shares or other securities are being offered produced by poLight ASA (the "Company") the future accuracy of the opinions expressed in pursuant to this Presentation. This Presentation excl
Slide 3: Today's agenda
Today’s agenda Presenting • Key events Dr Øyvind Isaksen • Introduction to poLight Chief Executive Officer Dr Isaksen has been CEO of poLight since August 2014. He has • Operations and markets review previously held several CEO positions, most recently in the publicly listed company Q-Free ASA, whic
Slide 4: Key events in the quarter
Key events in the quarter • Follow-on mass production order, worth NOK 0.35 million, from an augmented reality (AR) customer (received 22 November) • New design-win and initial mass production purchase order, worth NOK 0.4 million, for a high- end mixed reality head-mounted device (confirmed 27 Nove
Slide 5: poLight at a glance
poLight® at a glance Background & description Geographical footprint • Global player in tunable optics with applications in Horten Norway Tampere mobile, web cam, industrial, augmented reality, Oxford Finland medical and others UK Beijing San Jose, CA Lyon France China USA • Founded in 2005 and has
Slide 6: TLens Actuator: Enabling Smallest, Lowest Power, Fastest AF Cameras & Laser Projectors
TLens® Actuator: Enabling Smallest, Lowest Power, Fastest AF Cameras & Laser Projectors Principle of operation Implementation Piezo MEMS film Glass membrane Silicon Polymer Glass window From Gel > MEMS Wafer > TLens® > Camera module > OEM OEM´s Camera Bare TLens® Module Partners Driver ASIC Packaged
Slide 7: poLight products & technology well-suited for several applications
poLight products & technology well-suited for several applications Smartphones, wearables, Barcode/Industrial Augmented Reality (AR) Other accessories • Evolving from 1D laser to 2D • AR is expected to to grow • New opportunities are • Smartphone represent a large imaging barcode readers significant
Slide 8: Customer-wins
Customer-wins High End MR HMD LEION Pro World-facing Camera Enterprise AR World-facing Camera MV-ID2016M-16T MEIZU 20 INFINITY Smart Code Reader Selfie Camera Unnamed Customer Magic Leap 2 Enterprise AR X30M-E World-facing Camera Machine Vision: Direct Park Mark Reader Mi Bunny 4 Pro Smartwatch + X2
Slide 9: Operations and market review
Operations and market review 9 Fourth quarter 2023 - Earnings presentation
Slide 10: poLight @ CES & SPIE Photonic West
poLight @ CES & SPIE Photonic West • Successful meetings and demonstrations at CES in Las Vegas in January • Sharp showcased TLens® • Vuzix demonstrated Vuzix Shield enterprise AR glasses (to be launched) using TLens® • First poLight boot at a trade show – SPIE Photonic West • Demonstrated TLens®, T
Slide 11: Use case: Consumer
Use case: Consumer 11 Fourth quarter 2023 - Earnings presentation
Slide 12: Consumer: poLight remains persistent in a challenging sentiment
Consumer: poLight remains persistent in a challenging sentiment • During the quarter, the focus was on augmented/mixed reality and smartphone applications • + other applications, such as webcams, laptop, smart-home, wearable, etc. Education • The consumer market in general, and the smartphone market
Slide 13: Status on consumer (including AR/MR)
Status on consumer (including AR/MR) 4 Design-win 1 Design-in 9 PoC 14 Planning PoC 13 Fourth quarter 2023 - Earnings presentation POC = Proof of Concept, including TWedge®
Slide 14: Use case: AR
Use case: AR 14 Fourth quarter 2023 - Earnings presentation
Slide 15: AR/MR: Strong position in a mega trend
AR/MR: Strong position in a mega trend Enterprise & Consumer • Why TLens® - Key selling points; use cases Lo gis • Enables ultra-compact size camera modules tic • Ultra-low power consumption Education • Fast focusing speed • Constant field of view (FOV) and high optical stability • No gravity impact
Slide 16: AR/MR - key focus area for poLight
AR/MR - key focus area for poLight • TLens® is relevant for use in both world facing camera applications and display • Currently used in three AR/MR enterprise products already released to market – Magic Leap 2, LLVision and one High End MR HMD device High End MR HMD • The AR market segment continue
Slide 17: Status on AR/MR
Status on AR/MR 3 Design-win 5 Design-in 8 PoC 17 Planning PoC 17 Fourth quarter 2023 - Earnings presentation POC = Proof of Concept, including TWedge®
Slide 18: Use case: Industrial
Use case: Industrial 18 Fourth quarter 2023 - Earnings presentation
Slide 19: Barcode / Industrial
Barcode / Industrial • New customer released 2 new barcode products - Prowave • Six companies using TLens® in eleven commercially available products • All eleven cases are still shipping to customers and are expected to do so for AW300DP several more years • Thorlabs released an Optical Cage System
Slide 20: Status on Barcode/Industrial
Status on Barcode/Industrial 7 Design-win SI 1 Design-in 9 Array 13 PoC SI 8 Planning PoC SI La se r Dr on e 20 Fourth quarter 2023 - Earnings presentation
Slide 21: Use case: Healthcare & Automotive
Use case: Healthcare & Automotive 21 Fourth quarter 2023 - Earnings presentation
Slide 22: Healthcare
Healthcare • As mentioned last quarter, Xenocor is experiencing some unexpected problems unrelated to TLens® and had to go through a redesign process. Will not include AF • Cooperation with Kavli Institute at the Norwegian University of Science and Technology (NTNU), and the contribution the company
Slide 23: Automotive – a nontrivial volume opportunity
Automotive – a nontrivial volume opportunity • In-cabin camera requirement demand new solution • Autonomous driving drives step change in camera adoption • The use case calls for non-mechanical focusing solution • There may be a need for new technology, and TLens® is one of the solutions being explo
Slide 24: Promising pipeline
Promising pipeline Design-win Design-in Completed PoC Ongoing PoC Planning PoC Consumer 4 (4) 0 (0) 38 (37) 2 (3) 3 (9) Augmented/Mixed Reality 3 (2) 5 (5) 16 (13) 8 (11) 17 (14) Industrial 7 (5) 1 (1) 32 (30) 13 (12) 8 (7) Other (medical, automotive) 1 (1) 3 (2) 9 (5) 17 (20) 12 (11) 15 (12) 9 (8)
Slide 25: poLight PoC pipeline development
poLight PoC pipeline development 200 180 160 140 # Planning PoC, 120 PoC, 100 Completed PoC 80 60 40 20 0 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 -Q -Q -Q -Q -Q -Q -Q -Q -Q -Q -Q -Q -Q -Q -Q -Q 20 20 20 20 21 21 21 21 22 22 22 22 23 23 23 23 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 Planni ng PoC Ongo
Slide 26: Financial review
Financial review 26 Fourth quarter 2023 - Earnings presentation
Slide 27: Key financials
Key financials Income statement Balance sheet summary (in NOK million) Q4 2023 Q4 2022 FY 2023 FY 2022 (in NOK million) 31.12.2023 31.12.2022 Revenue 5.1 4.1 22.5 13.4 Intangible assets 17.6 24.9 Cost of sales -2.2 -1.3 -10.3 -4.8 Inventories 70.1 45.6 Research and development expenses -10.4 -6.1 -3
Slide 28: Cash Flow
Cash Flow Q4 2023 cash flow development • Q4 cash used in operating activities was NOK 17.8 million, compared with NOK 15.2 million in Q4 2022 (NOK million) • Q4 net decrease in cash was NOK 18.0 million 132.8 -17.8 0.1 -0.3 0 114.8 • According to current plans, the Group’s cash deposits will fund a
Slide 29: Outlook
Outlook 29 Fourth quarter 2023 - Earnings presentation
Slide 30: Outlook
Outlook • poLight remains persistent in a challenging consumer sentiment • poLight will continue to address the consumer market by; • Actively capitalising on its first important smartphone reference • Improve the capability of the eco-system to capitalize on various add-in TLens® designs • Address
Slide 31: Q&A
Q&A NEXT EVENT; • Annual Report • Q1-24 Report 24 April 2024 25 April 2024 31 Fourth quarter 2023 - Earnings presentation
Slide 32: Appendix
Appendix 32 Fourth quarter 2023 - Earnings presentation
Slide 33: Management Team
Management Team Dr Øyvind Isaksen Chief Executive Officer Dr Isaksen has been CEO of poLight since August 2014. He has previously held several CEO positions, most recently in the publicly listed company Q-Free ASA, which he left in January 2014, after 7 years as CEO. Øyvind Isaksen holds a PhD in Ap
Slide 34: Board of Directors
Board of Directors Grethe Viksaas – Board Chair, independent Grethe Viksaas has had a long career in the Northern European managed service provider Basefarm AS. First as founder and CEO, and later as executive chair and member of the board of directors. Prior to Basefarm, Ms Viksaas held several man
Slide 35: Statement of income
Statement of income NOK 000 Note Q4 2023 Q4 2022 FY 2023 FY 2022 Sale of goods 3 040 3 536 20 099 10 034 Rendering of services 2 107 557 2 412 3 328 Revenue 5 147 4 093 22 511 13 363 Cost of sales -2 185 -1 309 -10 349 -4 826 Gross profit 2 962 2 784 12 162 8 536 Research and development expenses ne
Slide 36: Balance sheet
Balance sheet NOK 000 31.12.2023 31.12.2022 ASSETS Property, pl a nt a nd equi pment 9 239 10 748 Inta ngi bl e a s s ets 17 580 24 855 Ri ght-of-us e a s s ets 2 763 3 871 Total non-current assets 29 583 39 474 Inventori es 70 089 45 577 Tra de a nd other recei va bl es 8 194 8 386 Prepa yments 626
Slide 37: Cash flow
Cash flow NOK 000 Operating activities Profit / loss (-) before tax Note Q4 2023 -27 457 Q4 2022 -16 604 FY 2023 -85 269 FY 2022 -67 644 Adjustments for: Depreciation of property, plant and equipment and right-of-use assets 687 568 2 396 1 877 Amortisation of intangible assets 8 1 819 1 819 7 275 8