Neonode Earnings Presentation Q3 2018

Transcription

1 1 Neonode Earnings Presentation Q November, 2018 Håkan Persson, CEO Lars Lindqvist, CFO David Brunton, Head of Investor Relations

2 2 Forward Looking Statements This presentation contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, adopted pursuant to the Private Securities Litigation Reform Act of Statements that are not purely historical may be forward-looking. You can identify some forward-looking statements by the use of words such as "believes," "anticipates," "expects," "intends" and similar expressions. Forward looking statements involve inherent risks and uncertainties regarding events, conditions and financial trends that may affect Neonode s future plans of operation, business strategy, results of operations and financial position. A number of important factors could cause actual results to differ materially from those included within or contemplated by such forward-looking statements, including, but not limited to risks relating to the uncertainty of growth in market acceptance for Neonode technology, a history of losses since inception, Neonode s ability to remain competitive in response to new technologies, the costs to defend, as well as risks of losing, patents and intellectual property rights, a reliance on current and future Neonode customers ability to develop and sell products that incorporate Neonode technology, customer concentration and dependence on a limited number of customers, the uncertainty of demand for Neonode technology in certain markets, the ability to manage growth effectively, dependence on key members of Neonode management and development team, limited experience in conducting operations internationally, and the ability to obtain adequate capital to fund future operations, For a discussion of these and other factors that could cause actual results to differ from those contemplated in the forward-looking statements, please see the discussion under Risk Factors contained in Neonode s Annual Report on Form 10-K for the fiscal year ended December 31, 2017 and in Neonode s publicly available filings with the Securities and Exchange Commission. Forward-looking statements reflect Neonode s analysis only as of the date hereof. Actual events or results may differ materially from the results discussed in or implied by the forward-looking statements. We do not undertake any responsibility to update or revise any of these factors or to announce publicly any revisions to forward-looking statements, whether as a result of new information, future events or otherwise.

3 NEONODE 3 Third quarter update Selected for technology evaluations by several automotive OEM s Q3 revenue decrease of 17% YoY Headwinds in the Chinese vehicles market Printer license fees affected by Canon shifting to new product platform Net loss reduced to $0.8M compared to $1.1M in Q Cash used reduced to $0.8M compared to $1.7M in Q Events after the quarter Customer acceptance of zforce AIR for a display in a medical device Purchase Order received for initial supply of sensors for Taxi Meters

4 4 Key Execution Areas Key Execution Areas Identify targeted use cases for Touch, Mid-Air Interaction and Object sensing Execution Progress Identified concrete use cases for targeted segments: Automotive, Consumer Electronics,Medical & Major Appliances Focused sales effort Sales process established Engaged withall license customers Targeted module sales to selected segments Started to establish partner network Increased marketing to create awareness Technology improvements to increase competitiveness Increased event participation Improved website content Improved visual communication New Interactive Demo Units New version of Core with enhanced performance and customer Bill of Material Cost down of zforce Air Preparing for volume production Automotive certification in progress Tuning production process Identified production partner

5 NEONODE 5 Capitalizing on Market Opportunities Increase licensing revenue from existing customers for both current and new models. Drive sales of sensor modules leveraging relationships with key customers within automotive and new customers in selected strategic segments. Use marketing, third party sales and systems integrators to create market coverage, pipeline and sales Grow NRE revenues from customer driven development projects automotive and licensing projects. Door Collision Avoidance IVI Virtual Trackpad Trunk Opener

6 6 Focus Segments and Use Cases Touch Interaction Mid-Air Interaction Object Sensing DIRECT SALES Automotive Consumer Electronics Touch on Display Smart Surfaces Entry System Door Collision Avoidance Pinch protection PARTNER SALES Other Segments (Medical devices, Industrial, Retail, Major Appliances) Touch on Display Rugged Display Smart Surface Touchless Touch Accident Avoidance Pinch protection

7 7 Customer Progress Touch Interaction Mid-Air Interaction Object Sensing Evaluation 2 Auto interior touch & touch on window, AI home device & consumer displays Lawn mower Washing machine & refrigerator DigiKey 509 evaluation kits Auto tailgate & trunk entry Rollable display Smart store Auto collision detection & pinch detection Prototype Auto steering wheel & infotainment system Pre-Production Auto taxi meter Medical display Aeronautics instrument display Printer display Auto collision detection

8 8 Summary of Technology Platforms zforce CORE Licensing Stable platform that enables very accurate touch on a display. Release of new version 1.5 in final stage. (Version 2.0 in concept design) Cost reduction Improved performance zforce AIR Licensing or Sensor Module A new level of freedom of design, ease of integration and flexibility. Key Focus Auto certification Preparing for mass production Larger form factors

9 9 Q3-2018: Financial Summary Q3 revenue decrease of 17% YoY License fees $1.6M,modules $22K and NRE s $287K compared to license fees $2.1M and modules $36K in Q Net loss of $0.8M or $0.01 per share compared to $1.1M or $0.02 per share loss in Q Expenses at $2.5M 3,5 3,0 2,5 2,0 1,5 1,0 0,5 0,0 0-0,5-1 -1,5-2 Revenues ($M) Q1-17 Q2-17 Q3-17 Q4-17 Q1-18 Q2-18 Q3-18 License Fees NRE Modules Net Income ($M) Q1-17 Q2-17 Q3-17 Q4-17 Q1-18 Q2-18 Q3-18

10 10 Q3-2018: License Revenues License fees decreased 23% YoY Printer license fees decreased 16%. Mainly related to HP and Canon Automotive license fees decreased 45% YoY License customers shipped 2.4 million products during Q3 2018, accumulated >64 million since ,0 2,5 2,0 1,5 1,0 0,5 0,0 License Fee Revenues ($M) Q1-17 Q2-17 Q3-17 Q4-17 Q1-18 Q2-18 Q3-18 e-readers Printers Automotive

11 11 Cash and Balance Sheet Summary Working capital of $4.6 million as of September 30, 2018 $2.7 million in cash and $1.5 million in accounts receivables as of September 30, 2018 Group Balance Sheet Summary ($M) Q Q Q Q Q Total Assets Equity Equity Ratio 69% 60% 65% 63% 62% Cash Current Liabilities Working Capital ,5-1 -1,5-2 -2,5-3 Cash Used By Operations Q3-16 Q4-16 Q1-17 Q2-17 Q3-17 Q4-17 Q1-18 Q2-18 Q3-18

12 12 Outlook We have focused the company on capturing market share where we have a distinct advantage. We have the building blocks to increase our revenue from licenses, NRE and sensor sales. We have been accepted as a sensor module supplier to a global medical device company creating a foundation to be included in future models. We will increase our marketing efforts to showcase the capability of our technology. My confidence is very high that we are on the right path to get to profitability.

13 13 Q&A