Company Overview November MICROVISION, INC. ALL RIGHTS RESERVED.

Transcription

1 Company Overview November MICROVISION, INC. ALL RIGHTS RESERVED. 1

2 Cautionary Note on Forward Looking Statements This presentation contains forward-looking statements. These statements include statements about our plans, strategies, financial performance, prospects or future events and involve known and unknown risks that are difficult to predict. As a result, the actual results, performance or achievements of MicroVision, Inc. ( MicroVision, we, us, our, the Company ) may differ materially from those expressed or implied by these forwardlooking statements. In some cases, you can identify forward-looking statements by the use of words such as may, could, expect, intend, plan, seek, anticipate, believe, estimate, predict, potential, continue, likely, will, would, and variations of these terms and similar expression, or the negative of these terms or similar expressions. Such forward-looking statements are necessarily based upon estimates and assumptions that are inherently uncertain. All statements in this presentation regarding our future business strategy, future products and technology development, market growth and technology adoption, financial growth, and plans and objectives for future operations, as well as information concerning industry trends and expected actions of third parties, are forward-looking statements. All forward-looking statements speak only as of the date as of which they are made. These statements are not guarantees of future performance and involve certain risks, uncertainties and assumptions concerning future events that are difficult to predict. The following factors, among others, could cause actual results to differ materially from those set forth in this presentation: Operating Losses: We have a history of operating losses and expect to incur significant losses in the future. Ability to Raise Capital: We will need to raise additional capital and there can be no guarantee that capital will be available to us or on terms that are acceptable to us. Single Source Suppliers: Production in early years will be with sole-source suppliers. Additional or replacement suppliers may be costly to obtain and take time to develop and customer relationships might be damaged while we develop new suppliers. Third Party Manufacturers: We use contract manufacturers. It is possible in the future they will decline to manufacture for us, allocate sufficient capacity to MicroVision, or give us competitive prices. Also our manufacturers are located in foreign countries and may be subject to natural disasters, labor strikes, political, economic, or regulatory risks, taxes and duties. Market Success and Adoption: Our components and engines may not be accepted by our customers and therefore may not be incorporated into end-user finished products. Also products which incorporate our technology might not achieve market acceptance. Limited Resources: MicroVision has limited financial and technical resources relative to some of our competitors. There could be delays in product development, and we may not be able to compete or keep up with rapid technological innovations. Intellectual Property: While we believe we have patent protection for our IP, it is possible we could face a challenge to the validity or scope of our patents. New patents from others may also be issued that our IP might infringe. Our customers take time to obtain: The ability to obtain customers in a timely manner or the ability to replace customers we lose in a timely manner can be difficult, resulting in lost revenues and a deterioration of our financial condition. We or our customers may also fail to perform under open orders or agreements, including our failure to achieve key technical milestones in key products, which could adversely affect our operating results and cash flows. Key Personnel: We have key personnel that we could lose to other companies. These personnel can be difficult to replace and such a loss may adversely affect our business. Regulatory Changes: Our technology and products may be subject to future environmental, health and safety regulations that could increase our development and production costs. Product Liability Claims: We could be subject to significant product liability claims that could be time-consuming and costly, divert management attention and adversely affect our ability to obtain and maintain insurance coverage. A more complete description of these risks and uncertainties can be found in the flings of the Company with the U.S. Securities and Exchange Commission, including in the Company s Annual Report on Form 10-K for the year ended December 31, We caution you not to place undue reliance on any forward-looking statements, which are made as of the date hereof or as otherwise specified herein. The Company undertakes no obligation to update any of these forward-looking statements to reflect actual results, new information or future events, changes in assumptions or changes in other factors affecting forward-looking statements, except to the extent required by applicable law. If we update one or more forward-looking statements, no inference should be drawn that we will make additional updates with respect to those or other forwarding-looking statements MICROVISION, INC. ALL RIGHTS RESERVED. 2

3 Artificial Intelligence is the Product Global spending on AI systems world wide in 2018 is expected to be $19.1B USD. It is expected to grow at CAGR of 46.2% from 2018 to 2021 to reach $52.2B USD.* MicroVision is focused on enabling unique Input / Output solutions for Artificial Intelligence connected products and services targeting 4 market verticals 2018 MICROVISION, INC. ALL RIGHTS RESERVED. *IDC report Worldwide Semi-annual Cognitive/Artificial Intelligence Systems Spending Guide, reported March 22, 2018 in Business Wire 3

4 AI Enabled Devices With MicroVision, they can: LISTEN AND SPEAK By focusing on the user experience, ANSWER BASIC QUESTIONS we make it easier, more natural and seamless to interact with AI PERFORM SIMPLE TASKS

5 Targeting 4 Large Vertical Markets IoT Products Interactive Display & Display Only through our License Partner Consumer LiDAR Smart Home & Security Automotive LiDAR Active Collision Avoidance AR+MR Integrated Display and Sensor Module for Binocular Headset 2018 MICROVISION, INC. ALL RIGHTS RESERVED. 5

6 MicroVision brings value to these markets through Embedded sensing and edge computing modules, enabling high fidelity user interfaces, services, security and driver safety MICROVISION, INC. ALL RIGHTS RESERVED. 6

7 IoT Products TARGETING 4 LARGE VERTICAL MARKETS Why MicroVision? Consumer LiDAR Smart Home & Security VR Content Generation Automotive LiDAR Active Collision Avoidance HD mapping AR+MR Optical Engine for Binocular Headset Large Field of View / High Resolution Illustrative application The smart speaker market is growing but limited to voice commands. Most users use only a few simple skills not tied to monetization. Amazon shipped 3.6M Echo family units in Q Google shipped 3.1M Home family units in Q Smart Speaker forecast 85M units in 2021, over 320M units installed base 2 1. Strategy Analytics, Global Smart Speaker Shipments and Revenue by Model and Price Band: Q IHS Markit Report on Smart Speakers 7

8 IoT Products Interactive Projection Consumer LiDAR Smart Home & Security VR Content Generation Automotive LiDAR Active Collision Avoidance HD mapping AR+MR Optical Engine for Binocular Headset Large Field of View / High Resolution Illustrative application TARGETING 4 LARGE VERTICAL MARKETS Why MicroVision? Integrated display & interactivity module with edge computing Augments voice assistants with a large interactive display enabling a more natural user experience for seamless transactions and expanded access to services Industry leading 80lm brightness* for a laser beam scanned display with embedded Time-of-flight sensing *Enhanced brightness, typical video content; based on company engineering estimates

9 IoT Products Display Only Consumer LiDAR Smart Home & Security VR Content Generation Automotive LiDAR Active Collision Avoidance HD mapping TARGETING 4 LARGE VERTICAL MARKETS Why MicroVision? DISPLAY LICENSE AGREEMENT 5-yr. worldwide exclusive agreement for the manufacture and sale of Display Only products. Shared go to market strategy targeting top tier OEM customers Right attributes to be successful Volume component purchases should drive cost reductions throughout the supply chain AR+MR Optical Engine for Binocular Headset Large Field of View / High Resolution Illustrative application Basic elements to the agreement: $10M license fee paid in 2018 Purchase of components from MicroVision- ASICs and MEMS Minimum purchase requirements to maintain exclusivity 9

10 Smart Speakers Increasing & Evolving 10

11 IoT Products Consumer LiDAR Smart Home & Security Automotive LiDAR Active Collision Avoidance HD mapping TARGETING 4 LARGE VERTICAL MARKETS Why MicroVision? We believe we can provide high fidelity sensing and presence detection to AI enabled services through IoT devices. Our solution has a very high-density point cloud (targeting 20M points/sec), Machine Learning for object recognition, reduced compute power and low latency at the right size and cost. AR+MR Optical Engine for Binocular Headset Large Field of View / High Resolution 33% US homes are projected to have a security system by 2022, annual market of $8B Statista.com April

12 IoT Products Consumer LiDAR Smart Home & Security VR Content Generation Automotive LiDAR Active Collision Avoidance AR+MR Optical Engine for Binocular Headset Large Field of View / High Resolution TARGETING 4 LARGE VERTICAL MARKETS Why MicroVision? OEM demand driven by safety regulations and technology disruption. Level 3 safety systems are expected to drive market volume. We believe our core technology gives us a competitive advantage. 95M cars and light trucks sold world wide in Nearly 1.25 million people die in road crashes each year. An additional million are injured or disabled LMC Automotive Global Light Vehicle Sales Update (1/17/2018) 2. Annual Global Road Crash Statistics, ASIRT.org 12

13 IoT Products Consumer LiDAR Smart Home & Security VR Content Generation TARGETING 4 LARGE VERTICAL MARKETS Why MicroVision? Our technology provides a highresolution display, enabling wide field of view and low persistence at a small size, low weight and low power consumption. Automotive LiDAR Active Collision Avoidance HD mapping AR+MR Integrated Display and Sensor Module for Binocular Headset AR/VR headsets projected to grow from <10.M units in 2017 to almost 70M by IDC Worldwide AR/VR Headset forecast, 2017Q4 13

14 The Road Ahead: Realizing our Vision Thought leadership Migration from R&D to Solution Provider We continue to plan our product development and commercial availability to intersect with market direction and readiness. We are moving up the corporate evolutionary curve to scale our technology and provide solutions in partnership with OEMs and key suppliers. Products We believe our products in each vertical are already aligned with OEM product paths MICROVISION, INC. ALL RIGHTS RESERVED. 14

15 How Our PicoP Scanning Technology Works for Displays A single MEMS scanning mirror MicroVision s LBS scanning technology produces a large screen viewing experience. It is always in focus and in HD. in an extremely tiny, low power engine 2D MEMS Micro mirror Blue laser Green laser Red laser 2018 MICROVISION, INC. ALL RIGHTS RESERVED. 15

16 How Our PicoP Scanning Technology Works for Displays MicroVision s LBS scanning technology produces a large screen viewing experience. It is always in focus and in HD 2D MEMS Micro mirror Red laser Blue laser Green laser

17 How Our LiDAR Technology Works for Interactivity X,Y location of object known because of knowledge of MEMS pointing angle Z determined by Time-of-Flight IR Photodiode 2018 MICROVISION, INC. ALL RIGHTS RESERVED. 17

18 Video Demonstration 2018 MICROVISION, INC. ALL RIGHTS RESERVED. 18

19 Innovative Developer of PicoP Scanning Technology Over 500 patents issued and pending NASDAQ: MVIS Core System IP Developed and continuously matured Embedded Software Embedded firmware and machine intelligence Custom ASIC + MEMS Enables scaling of our module business Custom Hardware Allows MicroVision to develop unique solutions that are difficult to replicate Advanced Manufacturing Allows us to compete with fabless and CM models 2018 MICROVISION, INC. ALL RIGHTS RESERVED. 19

20 Financial Highlights In Millions Sept 30, 2018 Dec. 31, 2017 Cash & Cash Equivalents $13.2 $17.0 Debt $0 $0 In Millions, except % 9 Months Months 2017* Revenue $15.8 $7.3 Gross Margins 60.7% 0% Net Loss ($15.3) ($17.4) *MicroVision implemented Revenue Standard ASC 606 for the year beginning January 1, 2018 using the full retrospective approach and 2017 results have been adjusted as if the new standard was in place for MICROVISION, INC. ALL RIGHTS RESERVED. 20

21 Capital Structure Shares Notes Shares Outstanding 93,073,343 As of 11/7/2018 Warrants 1,973,000 Exp 3/31/19 at $2.47 Options 5,603,270 Wtd Avg Strike $ MICROVISION, INC. ALL RIGHTS RESERVED. 21

22 At the Right Time, at the Right Price when the Market is Ready PRODUCT QUALITY OR FEATURES COST CUSTOMER PRODUCT OR MARKET TIMING 2019 REVENUE POTENTIAL* AR / MR Volume $ + NRE IoT products $$$ Consumer LiDAR Volume 2020 $$ Automotive LiDAR Volume $ We believe we can leverage our core technology and IP to develop and launch customized solutions for each market application 2018 MICROVISION, INC. ALL RIGHTS RESERVED. *$ are intended to be directional and not scaled 22

23 Path to Profitability Sell Interactive Display and Consumer Lidar modules with software to manufacturers of OEM devices. Sell component parts and software to licensee of Display Only modules. Sell component parts to customer of $24M April 2017 contract 2018 MICROVISION, INC. ALL RIGHTS RESERVED. 23

24 Keys to Successful Ramp Use world-class ODMs (contract manufacturers), already preferred suppliers to OEMs, for modules and components. ODMs allows for low manufacturing investment and control of expenses during ramp. Working with large contract manufacturer to reduce MicroVision s need to finance working capital. Common components between Display Only, Interactive Display, and Consumer Lidar should drive costs down due to shared volume MICROVISION, INC. ALL RIGHTS RESERVED. 24

25 Start with a manufacturable design Keys to Successful Ramp Leverage industry standard processes for MEMS silicon, ASICs, and Lasers Use highly automated processes proven to operate at high first-pass yields Establish manufacturing lines that are easily replicated to scale as volumes increase Leverage existing in-house process experts and in-country manufacturing support to scale MICROVISION, INC. ALL RIGHTS RESERVED. 25

26 Integrated MEMS Based Hardware and Software Module Solutions Module Sales Custom Development of Modules and Components License Modules Engineering Services Primary revenue path, productizing our technology with development of new MEMS based module for our customers Develop and launch custom MEMS, ASIC and integrated modules for customers License specific modules for mass market launch Hardware, software and advanced manufacturing services, to support launch of licensed modules 2018 MICROVISION, INC. ALL RIGHTS RESERVED. 26

27 Company Highlights Addressing large emerging market opportunities: IoT Products Consumer LiDAR Automotive LiDAR AR/MR Experienced management team Strong intellectual property Innovative developer of Laser Beam Scanning (LBS) technology Opportunities with $10M license agreement and $24M April 2017 contract 2018 MICROVISION, INC. ALL RIGHTS RESERVED. 27

28 Bringing IO to AI 2018 MICROVISION, INC. ALL RIGHTS RESERVED. PICOP IS A REGISTERED TRADEMARK OF MICROVISION, INC. ALL OTHER TRADEMARKS ARE THE PROPERTY OF THEIR RESPECTIVE OWNERS.