NEXT Biometrics Group ASA · OSL:NEXT
NEXT Biometrics Group ASA — Q2 2015 Earnings Presentation
32 slides from NEXT Biometrics Group ASA's earnings presentation, August 2015
Slide 1: Next Biometrics Group Q2-2015
NEXT BIOMETRICS GROUP Q2 -2015 CEO Tore Etholm-Idsøe / CFO Knut Stålen <<<<<
Slide 2: Summary
Summary • TIER 1 customer launch planned in 5-7 weeks. • Great customer acceptance of second generation products * • New Ultrathin sensors enabling highly competitive Smartphone designs • Entering India and Korea by signing AqTronics and WPG as NEXT distributors • Significant growth in NEXT-Enabled
Slide 3: The Financials
The Financials Knut Stålen, CFO The Fundamentals <<<<< 3
Slide 4: Key Financial Figures
Key Financial Figures MNOK Q2-15 Q1-15 Q1-14 Comments Q2-15 Revenue 0.3 2.4 0.0 Shipments for TIER 1 only Total operating expenses 23.9 24.3 14.8 Includes ramp-up and production Net operating earnings (EBIT) -23.6 -21.9 -14.8 (see next slide) Net profit (loss) -24.5 -19.6 -14.9 Cash flow in Quarter
Slide 5: Operating Expenses – Q2-15
Operating Expenses – Q2-15 Payroll expenses Comments • Payroll expenses increased to MNOK 10.3 in Q2-15 (MNOK 8.4 in Q1-15) • Full impact of additional recruitments in R&D • Currency impacts Other operating expenses (including cogs) • Other operating expenses reduced to MNOK 13.5 in Q2-15 (MNOK 15.9
Slide 6: P&L statement
P&L statement Condensed consolidated interim P&L statement Comments 2015 2015 2015 2014 2014 2013 Operating revenue NOK 0.3 million in Q2- Amounts in NOK 1 000 Q2 Q1 H1 H1 YEAR YEAR 15 (NOK 2.4 million in Q1-15) Operating revenue 283 2 385 2 668 682 6 306 38 Operating expenses of NOK 23.9 million in
Slide 7: Balance sheet
Balance sheet Consolidated balance sheet Comments Amounts in NOK 1 000 30.06.2015 31.3.2015 31.12.2014 31.12.2013 Cash and cash equivalents of NOK 76.0 Patents 7 053 7 134 7 215 7 538 million by end of Q1-15 compared to NOK Machinery and office 98.7 million by the end of Q1-15. equipment 18 584 3 24
Slide 8: Cash Flow Statement
Cash Flow Statement Condensed interim Cash Flow Comments Amounts in NOK 1 000 Q2- 2015 Q1-2015 Q4-2014 31.12.2014 31.12.2013 In Q2-15, NEXT consumed NOK 7.3 million in cash from operations compared to NOK 29.0 Profit (loss) before taxes -24 527 -19 575 -33 385 -79 691 -38 795 million in Q1-15 Share
Slide 9: The NEXT Technology
The NEXT Technology Tore Etholm-Idsøe, CEO The Fundamentals <<<<< 9
Slide 10: Roadmap with 2015 transitions
2 Roadmap with 2015 transitions New Traditional markets Smartphones Notebooks & Tablets NEXT-enabled markets 2014 1st Market-ready sensor module H1/ 2015 6 new module variants <<<<<
Slide 11: Roadmap - Bezel less sensor modules
2 Roadmap - Bezel less sensor modules.. RELEASE AUGUST 24th 2015 Bezel less designs enabling highly competitive smartphone sensor designs… Meeting high level ESD requirements – in all mass markets Further reducing sensor module costs 11 <<<<<
Slide 12: Roadmap with 2015 transitions
2 Roadmap with 2015 transitions New Traditional markets Smartphones Notebooks & Tablets NEXT-enabled markets 2014 1st market ready module H1/ 2015 6 new modules H2/ 2015 Bezel less Sensor New sensor version replace old sensors – module kept unchanged upgrade 95% + of all projects have been A majorit
Slide 13: Roadmap with 2015 transitions
2 Roadmap with 2015 transitions New Traditional markets Smartphones Notebooks & Tablets NEXT-enabled markets 2014 1st Market-ready module H1/ 2015 6 new modules H2/ 2015 Same modules – Now without surrounding bezel offering high level ESD protection & Lower cost «Bezel less» Use of existing modules
Slide 14: Unique access to game changing cost efficiency
Unique access to game changing cost efficiency Protected by patents and trade secrets at sensor and ASIC level.. The Active Thermal Principle, The unique simplicity of the NEXT patented and owned by NEXT, Active Thermal pixel designs Facilitating mass production is based on transfer of heat allows f
Slide 15: “The Madrid Report”
“The Madrid Report” A comparative analysis of size and quality in fingerprint sensors • Analysis of image quality, biometric performance and effect of size Scope ... The TCS1 • Comparison of 3 market leading best quality area sensors integrated in the Eicon Touch 510 Who ... • Carlos III de Madrid U
Slide 16: FRR performance at 0,01% FAR
FRR performance at 0,01% FAR.. High security setting – Targeting payments, corporate access, governmental appl. Images from full size sensors THE TCS-1 12.8*18.0 mm AVERAGE FRR 230 mm2 INDUSTRY STANDARD 500 dpi 0,42% MARKETING CLAIM : Capacitive Principle AT FAR 1 in 10 000 FRR IS < 1% THE NB-1010-U
Slide 17: FRR performance at 0,01% FAR
FRR performance at 0,01% FAR.. High security setting – Targeting payments, corporate access, governmental appl. Images from Images cropped Images cropped Images cropped full size at 12*12 mm at 10*10 mm at 8*8 mm sensors 144 mm2 100 mm2 64 mm2 THE TCS-1 12.8*18.0 mm AVERAGE FRR AVERAGE FRR AVERAGE F
Slide 18: 4 strong and significant competitive advantages
4 strong and significant competitive advantages.. • 70-80% cheaper than same size silicon area sensors Significantly • 20-35% lower cost than tiny competitive area sensors lower pricing Uncompromised • Polysilicon technology allows robust sizes at low cost security & • Company not forced to reduce s
Slide 19: Business Outlook
Business Outlook Tore Etholm-Idsøe, CEO The Fundamentals 19 <<<<<
Slide 20: Outlook -> Traditional Markets
Outlook -> Traditional Markets.. Adressable Market -> Competition -> Products -> Status LARGE SENSORS ONLY LEADS Årstallene… NB-1010 August 24th 71 projects NEXT DP/CROSSMATCH “DEL” = Realistic period of FPC first mass deliveries NB-1011 OPTICALS (LARGE) Some customers represents n.a. several projec
Slide 21: Notebook & Smartphone – Shift of focus
Notebook & Smartphone – Shift of focus… …. to true mass market – population level - sensor system implementations “In mass market implementation context a fingerprint sensor system must work: - Securely (FAR 1/10 000 or 1/ 100 000) - Coveniently (FRR < 1%) - Everyday (over the lifetime of the device
Slide 22: Outlook -> Notebooks & Tablets
Outlook -> Notebooks & Tablets.. Adressable Market -> Competition -> Products -> Status Årstallene… SMALL SIZES LARGER LEADS SYNAPTICS NEXT NB-2021 August 24th 37 projects FPC EGISTEC “DEL” = Realistic period of first volume deliveries NB-2020 Most leads represent n.a. multiple projects n.a. Årstall
Slide 23: Outlook -> Smartphones
Outlook -> Smartphones.. Adressable Market -> Competition -> Products -> Status SMALL SIZES LARGER LEADS Årstallene… NB-1012 SYNAPTICS NEXT August 24th 25 projects FPC (APPLE) “DEL” = Realistic period of GOODIX first mass deliveries EGISTEC NB-2011 Idex All leads in this segment 6 New Chinese - Capa
Slide 24: Sales – Smartphones .. Placement trend
2 Sales – Smartphones .. Placement trend.. Ascend 7 Oppo Huawei Nexus 5 HTC Honor 7 R7 LG Nexus 5 One Max Ascend G8 N3 (rumor) Fast growing number of suppliers and end-users recognizing the advantages of backside fingerprint sensor integration.. 24 <<<<<
Slide 25: Sales – Smartphones .. New & Attractive designs
2 Sales – Smartphones .. New & Attractive designs.. Depth: 0.4-0.6mm <<<<< NEXT BIOMETRICS
Slide 26: Sales – Smartphones .. New & Attractive designs
2 Sales – Smartphones .. New & Attractive designs.. Cosmetic Metal anode <<<<< NEXT BIOMETRICS
Slide 27: Sales – Smartphones .. New & Attractive designs
2 Sales – Smartphones .. New & Attractive designs.. Depth: 0.4-0.6 mm <<<<< NEXT BIOMETRICS
Slide 28: Outlook -> NEXT-Enabled
Outlook -> NEXT-Enabled.. Adressable Market -> Competition -> Products -> Status Årstallene… LARGE SENSORS AT LEADS LOW PRICE ONLY August 24th 57 projects NB-0510 NEXT “DEL” = Realistic period of first mass deliveries NB-0910 Lead times 6-12 months n.a. n.a. NB-1411 n.a. n.a. n.a. n.a. Higher n.a. n
Slide 29: Sales - “NEXT Enabled” 2015/16/17
2 Sales - “NEXT Enabled” 2015/16/17… i-Wallet represents 4 leads – 3 now transitioned to launch and PO’s Customer project handled by NEXT Distributor Fulcrum Biometrics NEXT sensor to replace swipe sensors Long term, attractive relationships.. Passport storage concept Min 1st commitment 10 K Targets
Slide 30: Outlook -> Summation competitive situation
Outlook -> Summation competitive situation New Traditional markets Smartphones Notebooks & Tablets NEXT-enabled markets LARGE SENSORS ONLY SMALL SIZES LARGER SMALL SIZES LARGER LARGE SENSORS ONLY NEXT SYNAPTICS NEXT SYNAPTICS NEXT NEXT DP/CROSSMATCH FPC FPC n.a. FPC (APPLE) EGISTEC n.a. n.a. GOODIX
Slide 31: On Track -> Expansion of capacity mass production
On Track -> Expansion of capacity mass production.. 1 2 3 4 Sensor Sensor coating ASIC Module & Assembly 3 ISO-9000 APPROVED PARTNERS Component…. Capacity • “Unlimited “capacity • 1.2 mill units per month • Unlimited “capacity • 0,5 mill per month August 2015 • 8 volume lots completed • 5-6 months l
Slide 32: Outlook
Outlook As of August 2015 • 1’st Multinational Brandname TIER 1 to launch in 5-7 weeks • Second generation sensors generate orders from Q4 Outlook • “NEXT-Enabled Markets” to generate high volume / long term business • New ultrathin sensor strengthens NEXT in smartphone segment • Further cost-reduct
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