ENTER THE WORLD OF NANO AND MICROSYSTEMS INVESTORS KIT

Transcription

1 ENTER THE WORLD OF NANO AND MICROSYSTEMS INVESTORS KIT

2 DISCLAIMER This presentation has been prepared by Tronics (the "Company") solely for presentation to investors. By receiving this presentation and attending this meeting, you acknowledge that you are aware of the following restrictions. This document in no way forms part of an offer or invitation to buy or subscribe to securities. Neither this document, not any part of the document, forms the basis of any contract or any commitment, and must not be used in support of any such contract or commitment. Any decision to buy or subscribe to securities as part of any future offer can only be made on the basis of the information contained in a prospectus approved by the French Financial Markets Authority or in any other offering document that may be prepared and issued by the Company as part of this offering. Furthermore, this presentation does not constitute an offer to subscribe, or a solicitation of an offer to subscribe, to securities in the United States of America. The Company s shares have not been and will not be registered under the US 1933 Securities Act as amended, and the Company has no intention of proceeding with any public offering of its shares in the United States. This document is promotional in nature and does not constitute a prospectus in the sense of Directive 2003/71/EC of the European Parliament and Council of 4 November 2003, as amended (as transposed in any Member State of the European Economic Area) (the Prospectus Directive ). With respect to the Member States of the European Economic Area in which the Prospectus Directive was implemented, no action was taken or will be taken to allow a public offering of the Company s shares that would require the publication of a prospectus in any of the Member States of the EEA other than France. Consequently, the Company s shares cannot and will not be offered in any Member State apart from France, unless in accordance with the exemptions in Article 3(2) of the Prospectus Directive, if it has been transposed into one or more of the Member States concerned or otherwise not requiring the publication by the Company of a prospectus under Article 3(2) of the Prospectus Directive and/or applicable regulations in those Member States. This presentation is communicated to you personally solely for your information and to be used only for the purposes of the Company s presentation. You must comply with all laws applicable to the possession of such information including laws relating to insider trading and the applicable regulations or recommendations of the French Financial Markets Authority. Neither this presentation, nor a copy of it, not any information contained it in may be sent to, or communicated or distributed in, directly or indirectly, the United States, Canada, Japan or Australia or to any resident of those countries. Non-compliance with any of these restrictions may constitute a violation of legal restrictions on financial offering documents in the United States, Canada, Japan or Australia. The distribution of this document in other countries may be subject to legal restrictions and anyone who comes to be in possession of it must inform themselves of the existence of such restrictions and comply with them. This presentation has been prepared by and under the sole responsibility of the Company. The following information has not been independently verified by the Company, its advisers or any other person and may be subject to significant updates, additions or revisions. No guarantee is given or implied as to the accuracy, fairness, comprehensiveness or relevance of the information in this document. The Company, it advisers and their representative may not be held liable for any harm resulting from any use made of this presentation or its content, or linked in any way whatsoever to this presentation. The Company is under no obligation to update the information in this presentation and any information in it may be modified without prior notice. This presentation contains forward-looking statements about the Company s objectives and development strategies. These statements are sometimes identified by the use of the future or conditional tense, as well as terms such as believe, expect, may, estimate, have the objective of, intend to, anticipate, should and other similar expressions. This information is subject to risks and uncertainties that may subsequently result in actual data being substantially different. These objectives and development strategies are not historical data and should not be interpreted as a guarantee that the facts or data will occur, that the assumptions will be borne out, or that the objectives will be achieved. By their very nature, these objectives may not be realized and the statements or information in the presentation may be proven incorrect without the Company, its advisers and representatives being under any obligation to update them, subject to applicable regulations. This presentation includes information on the Group s markets and its competitive positions, such as information about the size of the markets. Due to the lack of market studies in the Group s sphere of activity, this information is drawn from Company estimates and is provided only for indicative purposes. The Group s estimates are based on information obtained from customers, suppliers, professional organizations and other participants in the markets in which the Group operates. Although the Group considers that these estimates are relevant as of the date of the Base Document for Tronics, it cannot guarantee the completeness or accuracy of the data on which these estimates are based, or that its competitors define the markets in which they operate in the same manner. These estimates, and the data on which they are based, have not been verified by independent experts. The Group cannot guarantee that a third party using different methods to collate, analyze or calculate market data will obtain the same results. To the extent that the data relating to market shares in this Base Document are only Group estimates, they are not official data. A detailed description of the Company s activity, strategy and financial position as well as related risk factors is included in the Tronics Base Document which was registered by the French Financial Markets Authority (AMF) on December 22, 2014 under number I

3 A SEASONED AND COMPLEMENTARY MANAGEMENT TEAM Pascal Langlois CEO 25 years of experience in General Direction for semiconductor companies (ST-Ericsson, Philips Semiconductors BV, NXP, VLSI Technology, ) Joined Tronics in 2013 Stephane Renard CTO Founder of Tronics after 15 years at CEA-LETI Steering committee member and member (founder) of MINALOGIC SME competitiveness cluster President of Nano-Micro-Technologies Club Laurence Fayand CFO More than 20 years of experience in Financial Direction for high tech companies (HP, Cytoo, Beamind, Crocus Technology, Alditech) Joined Tronics in 2013 Brian Stephenson COO Tronics US More than 20 years of experience in Process Engineering for Microsystems companies (ST Microelectronics, Texas Instruments, WaferTech, Ebara Technologie) Joined Tronics in

4 NANO AND MICROSYSTEMS ARE PERVADING ALL SECTORS OF ACTIVITY Main application domains: Smartphones, Tablets & Wearable electronics Automotive Life Sciences Aeronautics Defense Main functions: Accelerometers, gyroscopes, pressure sensors, optical components 4

5 A TECHNOLOGY LEADER IN DESIGN AND MANUFACTURING OF NANO AND MICROSYSTEMS Tronics (Dallas) Tronics (Crolles) 2014 revenue: 11.6 M 88 employees including 55 engineers and scientists 15 years of R&D 25 active patent families Leading customer references 2 direct production sites, plus distributors in Japan, China and Israel 5

6 A NEW PHASE OF GROWTH A company focused on technology Accelerated monetization of technology expertise monetization First promising results. Becoming a major worldwide player Development of a strong and patented technology expertise Constitution of technology platforms International development One major customer (Sercel) representing more than half of total revenue Strengthened management team Launch of new solutions and acceleration of marketing initiatives Willingness to diversify customer portfolio More than 85% of revenue outside of Sercel in 2014 Growth: +14% in 2014 (+54% excluding Sercel) 13 new customers Unique positioning on the most promising segments Ambitious product roadmap Raising funds to give the Group sufficient resources to fulfill its ambitions Disruptive technology: M&NEMS 6

7 AGENDA Enter the world of nano and microsystems 1 Tronics, at the heart of product innovation 2 A company with high technological value 3 Solid performances 4 Acceleration of growth 7

8 Tronics, at the heart of product innovation 8

9 WHAT IS THE PURPOSE OF NANO AND MICROSYSTEMS? Nano and microsystems are miniaturized devices enabling sensor and/or actuator functions Miniaturization, power savings and system cost optimization Inertial Sensors: orientation, speed and position of an object in space EXAMPLE OF A MICROSYSTEM: GYPRO MEMS/NEMS element Control, digitization and communication electronics Optical Microsystems: integration of miniaturized optical systems Packaging RF Components: management of Radio- Frequency signals Mobile microstructure BioMEMS: compact devices for biology or pharmacology analysis Nanowire 9

10 TRONICS, A REFERENCE PLAYER ON HIGH-GROWTH MARKETS Markets addressed directly by Tronics 3 In $B Source Yole Développement 2014 and Tronics estimates 2, %/year 2.6 HIGH-GROWTH MARKETS SUPPORTED BY: 1,5 1 0, MINIATURIZATION OPENING NEW USAGES - DEVELOPMENT OF THE NEXT PRODUCT GENERATION Our answer Business model Medical Industry Aeronautics & Security Market needs Microsystems that are efficient and tailored to each need Competition Fragmented Difficult for big players to remain competitive on specific products Technology industrialization: Improved time to market Full-service offer from concept to production 10

11 TRONICS, A REFERENCE PLAYER ON HIGH-GROWTH MARKETS Global consumer market and share accessible for Tronics 12 In $B Source Yole Développement 2014 and Tronics estimates %/year 0.8 $B HIGH-GROWTH MARKETS SUPPORTED BY: - ULTRA-MINATURIZATION - RAPID DEVELOPMENT OF B TO C WEARABLE ELECTRONICS Share accessible for Tronics Global consumer market Our answer Business model Market needs Cost-competitive and standard microsystems Competition All international big players (mass market /high volume) Development of a disruptive technology: M&NEMS Technology transfer Design Licensing / royalties 11

12 Tronics, a company with high technological value 12

13 A UNIQUE POSITIONING ACROSS THE WHOLE VALUE CHAIN From engineering to manufacturing Qualification Design and simulation Specifications and management of control electronics Manufacturing processes Tests and characterization A FULL RANGE OF SERVICES WITH HIGH ADDED VALUE 13

14 A STRONG TECHNOLOGICAL AND INTELLECTUAL PROPERTY STRONG ENTRY BARRIERS 15 years of R&D 15 M invested directly 25 families of patents in 3 domains DISRUPTIVE TECHNOLOGY M&NEMS 1/ INTERNAL R&D 2/ CO-DEVELOPMENTS WITH INDUSTRIALS Thales, Elecktropribor, HSRI, etc. 3/ SUBSIDIZED PROGRAMS CEA/LETI and academic partnerships CUSTOM OR STANDARD PRODUCTS 11 employees dedicated to R&D MANUFATURING PROCESSES 14

15 REUSABLE TECHNOLOGY BLOCKS TO ACCELERATE TIME TO MARKET CORTO: Tronics capitalizes on its leadership in high performance inertial sensors M&NEMS: disruptive technology developed by LETI (15 patent families) 6 patents from Tronics 15

16 A FABLIGHT STRATEGY ENABLING GROWTH WITH CONTROLLED EXPENSES PRODUCTION UNIT EUROPE Crolles PRODUCTION UNIT NORTH AMERICA Dallas Honeywell site In-house production Medium volumes 6 fab, class 10-1, m 2 of clean room Capacity: 10,000 wafers/year Subcontracted production + High volumes 6 fab, class ,800 m 2 of clean room Capacity: 50,000 wafers/year Potential partners identified in Asia for consumer volumes 16

17 Why Tronics? Customer need TRONICS: A UNIQUE ANSWER ON THE MARKET, WITH HIGH ADDED VALUE EXAMPLES OF 3 CUSTOMER CASES Tronics, a unique value proposition Chip for pharmaceutical diagnostic Reusable technological expertise Flexibility and fast execution Device on glass for optical systems European pioneer in a special process (nano lithography) Time to market reduction Multi axis sensors for consumer electronics products Technological edge (M&NEMS) Complete offer (design + manufacturing) Low cost Agility / Responsiveness Complete offer (design, manufacturing, packaging) Width of processes portfolio Technological edge / nanosystems Tronics Competitors Time To market 2 years 1 year 1.5 years Proven platforms 17

18 PORTFOLIO OF CUSTOMER REFERENCES SAMPLE OF CUSTOMERS Aeronautics & Security Industry Medical Consumer electronics Representatives / Distributors A portfolio of close to 50 active customers in

19 Solid performances 19

20 A STRUCTURED ORGANIZATION Management Tronics Microsystems Solution Platform (Europe) Tronics Microsystems (US) Manufacturing Quality & IP Finance & Admin. Sales & Marketing Research & Development programs 7 7 Engineering 11 Manufacturing WORKFORCE DISTRIBUTION 46 R&D Sales & Marketing 17 General Administration 20

21 A PROVEN COMMERCIAL AND INDUSTRIAL MODEL CYCLE TIME FROM SALES TO PRODUCTION Pre-sales 3 to 6 months Concept & prototyping 9 months Industrialization 6 to 9 months Recurring production DISTRIBUTION OF 2014 REVENUE* BY NATURE (%) DISTRIBUTION OF 2014 REVENUE* BY PRODUCTION UNIT (%) 59% 41% 23% Manufacturing Engineering 77% Crolles Dallas Manufacturing (sale of end-use products) Engineering (sale of services) *estimated 21

22 HIGH GROWH POTENTIAL OUTSIDE EUROPE EVOLUTION OF REVENUE (M ) DISTRIBUTION OF 2013 REVENUE BY SECTOR (estimates) (%) 2% Industry 34% Consumer % 49% Aeronautics & Security Life sciences Revenue incl. Sercel Revenue excl. Sercel 2012: Sercel announces a 50% reduction in its orders 2013: revenue excl. Sercel grow +31% 2014: 13 new customers Growth of 54% excluding Sercel 22

23 BACK TO PROFITABLE GROWTH CONSOLIDATED INCOME STATEMENT (IFRS) K months months H months H months Revenue 13,638 10,177 5,031 6,001 Back to strong and homogeneous growth across activities Research Tax Credit 1, Subsidies 1,659 2, ,110 Total revenue 16,373 13,393 6,397 7,447 Current operating income 2,188 (524) (840) 219 Financial income (106) (131) (51) (84) Income before tax 1,926 (655) (891) 136 Leverage effect of growth Controlled cost structure Semi-annual breakeven reached in the US for the first time Income taxes (199) (60) (25) (35) Share in income of associated companies (17) (12) - (19) Net income 1,709 (727) (916) 82 Group share of net income 1,769 (684) (885) 79 23

24 A SOUND BALANCE SHEET Assets 6,088 6,753 Equity Other current assets Current assets 1,377 4,343 5,358 Financial debt Including current financial debt: 1,090 K Cash 3,790 3,487 Other liabilities ASSETS ACTIF EQUITY PASSIF & LIABILITIES Gearing (net debt/equity) as of June 30, 2014: 23% 24

25 CASH FLOWS TABLE K 31/12/ /06/2014 Variation deriving from operations Including WCR variation Positive operating cash flow WCR increase to support growth Variation deriving from investments -1, Controlled CAPEX Variation deriving from financing 1, Variation in cash flow Closing cash 3,959 3,790 25

26 Acceleration of growth 26

27 STRENGTHENING OUR SALES FORCE Double Sales and Marketing workforce within 3 years Increase engineering staff Increase the number of active programs with existing customers Expand pipeline of sales opportunities Target leaders in each of the addressed sectors 27

28 EXTEND TECHNOLOGY LEAD ACCELERATION OF CUSTOMER PROGRAMS AND DEVELOPMENT OF PRODUCT PORTFOLIO IP ROADMAP TRANSITION TO 8 INCH TECHNOLOGY IN 2017 Become a key player on the segment of disposable medical devices Capitalize on our leadership in inertial technologies in the industry, aeronautics and defense markets Develop our portfolio of standard products 28

29 SEIZE EXTERNAL GROWTH OPPORTUNITIES IN A SECTOR UNDER CONSOLIDATION ACQUISITION OF A COMPLEMENTARY PRODUCT LINE WITH HIGH ADDED VALUE AND HIGH MARGIN TO: - Complete the offer of high performance inertial components - Accelerate the penetration of medical devices segment (micro-fluidic systems) INTEGRATION OF A TEAM WITH STRONG SKILLS IN ELECTRONICS DESIGN, SIGNAL PROCESSING AND MICRO-CONTROLLERS Our targets: companies of smaller or equivalent size 29

30 STRONG AMBITIONS FOR GROWTH Profitability improvement: Acceleration of growth 2018 target: 40 M - Optimization of production capacity - CAPEX control - Licensing - Increase of customers in sales pipe - New customers 30

31 WHY INVEST IN TRONICS? PROMISING MARKET ESTIMATED AT MORE THAN $1.5 B A COMPANY WITH HIGH TECHNOLOGICAL VALUE CLEAR GROWTH STRATEGY AND OBJECTIVES (a major part of this growth will come from the entry into production of current programs now in the engineering phase) SUPPORTED BY LEADING INDUSTRIALS Subscription commitment of 6 M by Thales, worldwide leader in high technologies for Aerospace, Transportation, Defense and Security. 31

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