Neonode Inc. · NASDAQ:NEON
Neonode — Q3 2020 Earnings Presentation
39 slides from Neonode's earnings presentation, Nov 10, 2020
Slide 1: Neonode Inc. Third Quarter 2020 Presentation
Neonode Inc. Third Quarter 2020 Presentation Dr. Urban Forssell, CEO Ms. Maria Ek, CFO Mr. David Brunton, Head of Investor Relations November 10, 2020
Slide 2: Disclaimer
Disclaimer 2 This presentation contains, and related oral and written statements of Neonode Inc. (“Neonode” or the “Company”) and its management may contain, forward‐looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include info
Slide 3: Strategy and Business Update
3 Strategy and Business Update
Slide 4: Business Areas
Business Areas 4 HMI Products HMI Solutions Remote Sensing Solutions • Sales of standardized sensor • Sales of customized engineering • Sales of software solutions for modules for contactless touch, solutions for touch and gesture driver and in-cabin monitoring touch, and gesture sensing sensing • F
Slide 5: Technologies and Application Areas
Technologies and Application Areas 5 Our IR-based zForce® technology supports: • Touch Sensing Applications • Touch on displays • Touch on other surfaces • Gesture Sensing Applications • Contactless touch • Gesture control • Proximity sensing Our software platform MultiSensing® supports: • Driver an
Slide 6: Business Area – HMI Solutions
6 Business Area – HMI Solutions Focuses on customized optical touch and gesture control solutions for demanding customers in the Military & Avionics and Industrial segments using our patented IR-based zForce technology.
Slide 7: Business Concept
Business Concept 7 • IR-based touch and gesture sensing solutions Neonode’s Technology at a Glance: • 100% bespoke solutions adapted for each Cost-effective touch and gesture control solutions customer’s specific needs EMI/EMC-ruggedness Robust operation (with gloves, in sunlight etc.) • Scala
Slide 8: Touch Sensing
Touch Sensing 8 Touch on Displays or Other Surfaces When conventional touch technologies fall short • Robust operation – ideal for demanding environments • High performance – low latency and high scanning speed • Optimal image quality – no overlay required
Slide 9: zForce Technology Platforms
zForce Technology Platforms 9 Neonode’s IR-based zForce technology comes in two main variants: zForce Blocking Technology zForce Reflective Technology • Display solution • Display, surface or in-air solution. • Four-sided sensor arrangement • One-sided sensor arrangement • Objects positioned by dete
Slide 10: Market and Segmentation
Market and Segmentation 10 TAM: 150K units ($1.78B), TAM: 3M units ($5.45BN), 5.2% CAGR -> 2025* 6% CAGR -> 2025* O Military & Avionics Industrial Misc. P P O OUTDOOR - Harsh environments Printing Defense (1/3 of total volume) (dust, light, humidity) R Automotive T Air INDOOR - Smart building (acces
Slide 11: Market Information
Market Information* 11 Total Available Market (2020): • Industrial display market: $5,45B • Military & Avionics market: $1,78B CAGR: • Industrial market: 5.9% • Military & Avionics market: 4.3% Industrial Display Market: • Manufacturing • Mining & Metals • Chemical, Oil, and Gas Military & Avionics
Slide 12: Business Area – HMI Products
12 Business Area – HMI Products Focuses on sales of Neonode’s innovative, plug-and-play sensor modules, using our reflective IR-based zForce technology that enable contactless touch, touch, and gesture sensing applications.
Slide 13: Business Concept
Business Concept 13 • Business area focused on sales of standardized sensor modules towards Interactive Kiosk and Elevator market segments, suitable for touch on display, surfaces and in-air. Neonode’s Technology at a Glance: • Sensor modules easy to integrate and ideal for both new IR-based touch
Slide 14: Gesture Sensing
Gesture Sensing 14 Contactless Touch and Gesture Control The new normal for public interaction • High degree of design freedom – holographic touch or in-air touch with multiple configurations • Germ-free – preventing the spread of germs in public environments • Fast and simple integration – Neonode’
Slide 15: Sensor Modules Product Overview
Sensor Modules Product Overview 15 Nine different lengths: Two main variants: 346mm 115mm
Slide 16: Contactless Touch Two Ways to Go!
Contactless Touch Two Ways to Go! 16 Parallel Plane Configuration: Holographic Configuration: Touch interaction area hovering above (or in Touch interaction on an in-air display. front of) the display.
Slide 17: Market and Segmentation
Market and Segmentation 17 TAM: Installed Base 39 Mu, TAM: Installed Base 17Mu, 9.1% CAGR 2027* 4.5% CAGR 2026* O Interactive Kiosks Elevators Others P P O Medical Vending Machines Major OEMs R Office Equipment T Quick Service Restaurant PoS Control Panel/Button Suppliers U White goods N Automate
Slide 18: Interactive Kiosks Market
Interactive Kiosks Market* 18 6. Self checkout 1. Vending Machines 5. Self Check-in 4. Automated Teller Machines North America is largest market China, the United States, Japan, Asia-Pacific has largest CAGR Brazil and India: >50% of all units. Units (2019): 15M All except India are in decline. CAGR
Slide 19: Elevators Market
Elevators Market* 19 Top 10 OEMs share by Revenue (70B USD) Fujitec (Japan), 2% Hyundai Elevator (South Korea), 2% • Three distinctive categories of players: SJEC (China), 3% 1. OEMs; limited number of large global corporations Toshiba (Japan), 4% Otis (US), 18% based in North America, Europe and Ea
Slide 20: Partner Network
Partner Network 20 Distributors Value-added Resellers Other Partners
Slide 21: Success Stories – Elevators
Success Stories – Elevators 21 Contactless elevator control panels powered by Neonode Sensor Modules Finetek Hong Kong Productivity Council Elevator solutions developed, manufactured and sold by Elevator retrofit solution developed and sold by Neonode’s Hong Neonode’s Korean parter, Finetek. Kong-ba
Slide 22: Success Stories – Airport Kiosks
Success Stories – Airport Kiosks 22 Contactless self-check in and self-service bag drop terminals powered by Neonode Sensor Modules Changi Airport Group Japan Airlines Retrofit solution called happyhover™ developed and Retrofit solution developed and implemented at Tokyo’s Haneda implemented by Neon
Slide 23: HMI Products and HMI Solutions – Separate Focii, Many Synergies
HMI Products and HMI Solutions – Separate Focii, Many Synergies 23 HMI Products Business Opportunities HMI Solutions VP Johan Swartz VP Jonas Wærn Product ideas Interactive Military & Elevators Industrial Kiosks Partners Avionics Other, misc. Technology Other, misc. • Sales of standardized products
Slide 24: Business Area – Remote Sensing Solutions
24 Business Area – Remote Sensing Solutions Focuses on driver and in-cabin monitoring in vehicles. Addressing the need for robust, cost-effective driver and in-cabin monitoring systems that enable OEMs to be compliant with the new EU general safety regulations (GSR) and meet the Euro NCAP guidelines
Slide 25: Business Concept
Business Concept 25 • Business area focusing on camera and AI based driver and in-cabin monitoring. Neonode’s Technology at a Glance: Scalable AI software platform for driver and cabin • Offers custom software applications adapted for monitoring each customer’s specific needs. Monitors the drive
Slide 26: MultiSensing
MultiSensing 26 Neonode’s MultiSensing software platform addresses the need for robust, cost-effective driver and in-cabin monitoring systems • Scalable – Fits many different applications and supports different features and performance levels • Hardware agnostic – The software can be integrated and
Slide 27: Market Drivers Driver and In-Cabin Monitoring
Market Drivers Driver and In-Cabin Monitoring 27 Safety features (examples): • Driver distraction Safety • Driver drowsiness • Hands on steering wheel Security • Advanced occupancy monitoring • Child left behind • Seatbelt use and position Driver Identification Comfort features (examples): Driver As
Slide 28: The Technology Explained
The Technology Explained 28 MultiSensing is a proprietary software platform for driver and in-cabin monitoring. MultiSensing realizes some of Neonode´s key proprietary innovations such as: • Rule-based decision algorithms • Extremely resource efficient machine learning MultiSensing is accompanied by
Slide 29: How We Differentiate from Competition
How We Differentiate from Competition 29 Full control over data • Well balanced Short Development Data Recording • Mitigation of corner cases is quick and easy Cycles • Special and unlikely scenes can be created Excellent change • Recordings only necessary for validation management (Inclusively
Slide 30: Financial Update Third Quarter 2020
30 Financial Update Third Quarter 2020
Slide 31: Q3 2020 Summary
Q3 2020 Summary 31 Revenues • Revenues of $1.5M compared to $1.3M in Q3 2019 2,500 • Increase driven by product sales 2,000 1,500 1,000 • Operating expenses of $3.0M compared to $2.4M 500 in Q3 2019 0 • Operating expenses includes one-time costs Q1-18 Q2-18 Q3-18 Q4-18 Q1-19 Q2-19 Q3-19 Q4-19 Q1-20
Slide 32: Q3 2020 Revenues
Q3 2020 Revenues 32 HMI Solutions business area Revenues HMI Solutions 2,500 • $1.2M license revenues from the solutions business, both in Q3 2020 and 2019 2,000 1,500 • Majority of revenues still from consumer 1,000 electronics but increase in automotive 500 • License customers shipped 1.7 million
Slide 33: Q3 Operating Expenses and Result
Q3 Operating Expenses and Result 33 Operating Expenses • Operating expenses increased by 25% compared to Q3 4,000 2019 3,500 3,000 • Operating expenses down by 2% excluding one-time costs 2,500 • Lower staff expenses and travelling 2,000 1,500 1,000 • Operating loss increased by 47% Q3 2020 compared
Slide 34: Cash
Cash 34 • Net cash used in operating activities during Q3 2020 increased by $0.4M compared to same period last year due to increase in net loss • Cash and accounts receivables of $13.3M per end of September • Still sufficient cash to execute on the business plan Net cash used in operating activities
Slide 35: Highlights
Highlights 35 • Our zForce technology – patent protected – is an enabling technology ideally positioned to solve for a lifestyle shift to contactless touch solutions brought on by COVID-19 • High demand for contactless touch solutions – enormous market opportunity to integrate Neonode technology int
Slide 36: Appendices
Appendices ®@neonode: Copyright Neonode © 200: 020. ‘Stockholm — San Jose — Seoul — Toky« Nasdaq (NEON)
Slide 37: Sources to Market Intelligence on Pp. 10-11
Sources to Market Intelligence on Pp. 10-11 37 Industrial and Military & Avionics https://www.prnewswire.com/news-releases/industrial-display-market-size-worth-726-billion-by-2025--cagr-6-grand-view-research-inc- 643682123.html https://www.researchandmarkets.com/reports/4655830/glass-cockpit-for-aer
Slide 38: Sources to Market Intelligence on Pp. 17-19
Sources to Market Intelligence on Pp. 17-19 38 Elevators Interactive Kiosks https://www.statista.com/statistics/281177/net-sales-of-otis/ https://www.rbrlondon.com/research/retail-hardware/ https://www.marketscreener.com/quote/stock/HYUNDAI-ELEVATOR-CO-LTD- https://www.aeronewstv.com/en/lifestyle/in
Slide 39: Thank You
Thank You [email protected] neonode.com