Slide 1: Elliptic Labs Q1 Presentation
Elliptic Labs Q1 Presentation May 12, 2021 AI software empowering the next billion devices 1
Slide 2: Disclaimer – Important Information
DISCLAIMER – IMPORTANT INFORMATION The following presentation is being made only to, and is only directed at, persons to whom such presentation may lawfully be communicated (“relevant persons”). Any person who is not a relevant person should not act or rely on this presentation or any of its content
Slide 3: Agenda
Agenda Introduction and Q1 2021 highlights Financials Summary 3
Slide 4: Q1 Highlights
Q1 HIGHLIGHTS Building momentum along with enhanced operational performance • Enhanced financial performance compared with Q1 2020: • Operating revenues up from NOK 4.0m to NOK 4.5m • EBITDA improved from NOK -11.1m to NOK -8.5m • Cash flow from operations improved from NOK -6.0m to NOK 0.2m • Recen
Slide 5: Elliptic Labs develops smart software-sensors that use AI and ultrasound
Elliptic Labs develops smart software-sensors that use AI and ultrasound to sense you and your surroundings 5
Slide 6: Sensors touch every aspect of life and drive the digital transformation
Sensors touch every aspect of life and drive the digital transformation Our vision is to build the leading software platform for all sensors, making every device smarter and more environmentally-friendly 66
Slide 7: Today we are the ultrasound leader for consumer market
Today we are the ultrasound leader for consumer market Who Global AI software company with presence in Norway, Asia and USA AI Virtual software sensors for presence, 3D gestures and heartbeat What detection for consumer and automotive markets Deployed Our in 100M+ devices Well-invested and -develope
Slide 8: We enable critical user experiences for smartphone, laptop, IoT & automotive markets
We enable critical user experiences for the smartphone, laptop, IoT & automotive markets Virtual Smart Sensor Platform Making Sensors More Intelligent Proximity Presence Gesture Positioning Connection Breathing Heartbeat 8
Slide 9: Strengthened market opportunities
Strengthened market opportunities Tight supply chain impacts hardware sensor availability and pricing, improving our competitive advantage PC/LAPTOP/ MARKETS SMARTPHONE SMART TV IOT AUTOMOTIVE TABLET Total market size units 1.6B 460M 400M 1B++ 100M Time of Competing Hardware Infrared Sensor Time of
Slide 10: Smartphone market
Smartphone market More smartphone launches – added new customer 1.6B smartphones have a proximity sensor turning screen off/on when users are making calls: • Most smartphones are using hardware sensors for proximity, that we are replacing with our smart software sensors • Customers partner with us t
Slide 11: PC market is the next large vertical
PC market is the next large vertical 2020 PC/Laptop CPU Market Share 2020 PC/Laptop/Tablet Volumes (Revenue) (Millions of units - Mu) ~$300M Qualcomm $6.4B 87 Mu AMD ~$100M Lenovo Other 200,5 Mu Other 67,8 Mu HP $40B Intel 50.5 Mu Dell 20 Mu 16.2 Mu Huawei 16,4 Mu Acer *AMD does not separate revenue
Slide 12: PC market opportunity
PC market opportunity Positioned to be standard provider for presence detection Laptop OEMs want presence detection on all their devices: • Our software sensors meet both the price-point and performance needed to broadly deploy presence-sensing capabilities to all tiers of a laptop manufacturer’s pr
Slide 13: Aligning roadmaps with current and new chipset partners
Aligning roadmaps with current and new chipset partners for easier deployment of our solutions for joint customers Platform • Established partnership with Cadence, a leader in electronic design automation, optimized Elliptic machine learning algorithms on Cadence Tensilica HiFi DSPs. Jointly enablin
Slide 14: Go-to-market partners continue to progress
Go-to-market partners continue to progress Continued joint promotion and marketing to new and current customers and markets: • Smartphone • PC • SmartTV • SmartAppliances 14
Slide 15: Agenda
Agenda Introduction and Q1 2021 highlights Financials Summary 15 15
Slide 16: Key Elliptic Labs KPIs per Q1 2021
Key Elliptic Labs KPIs per Q1 2021 # Number of granted and filed patents Cumulative number of partner-agreements 93 99 86 16 # Patents 77 15 70 41 45 # Of partner- (granted and 40 36 agreements filed) 38 9 7 general markets 46 52 54 41 32 4 2017 2018 2019 2020 Q1 2021 2017 2018 2019 2020 Q1 2021 Gra
Slide 17: Q1 2021 P/L
Q1 2021 P/L Q1 2021 Q1 2020 YTD 2021 2020 Q1 comments: Revenue 1 719 380 2 256 1 719 380 30 215 044 • Customer revenue significantly up Other operating income 2 813 100 4 011 494 2 813 100 14 517 048 from Q1 2020 Total revenue 4 532 480 4 013 750 4 532 480 44 732 092 • Slim operating cost base impli
Slide 18: Q1 2021 Balance Sheet and Cash Flow
Q1 2021 Balance Sheet and Cash Flow Amounts in NOK 31.03.2021 31.12.2020 Non -current assets Solid Balance Sheet after Q1 2021 Deferred tax assets 62 273 885 59 807 034 Intangible assets 29 587 687 28 240 698 • Despite low recognized revenues, cash position only reduced from NOK Right of use assets
Slide 19: Clear path towards significant revenue uplift
Clear path towards significant revenue uplift • Revenue from smartphone to increase from new customers and new features to existing and new customers • Larger fixed volume contracts on units/devices – increases revenue certainty • Laptops are the largest revenue driver the nearest future as: OEM’s a
Slide 20: Shareholder Structure as per May 6, 2021
Shareholder Structure as per May 6, 2021 SHAREHOLDER NAME #Shares % SHAREHOLDER NAME #Shares % Passesta AS (Chairman, Tore Engebretsen) 1,194,416 12.4% Shares owned by Board of Directors 2,087,849 21,8 % MP Pensjon PK 890,093 9.3% Shares owned by Mgmt. and Employees 814,868 8,5 % Alden AS (Board Mem
Slide 21: Agenda
Agenda Introduction and Q1 2021 highlights Financials Summary 21
Slide 22: Elliptic Labs is well positioned for growth
Elliptic Labs is well positioned for growth ✓ Solid foundation for growth with software deployed at large scale in the smartphone market ✓ Launched on more smartphone models and added one large customer ✓ Strengthened partner collaborations with leading semiconductors for PC and IoT ✓ New office in