Sequans Communications SA · NYSE:SQNS
Sequans Communications SA — Investor Presentation (November 2024)
22 slides from Sequans Communications SA's investor presentation, November 2024
Slide 1: Sequans Investor Presentation
Sequans Investor Presentation November 2024 Dr. Georges Karam, CEO Deborah Choate, CFO
Slide 2: Safe Harbor
Safe Harbor This presentation contains certain statements that are, or may be deemed to be, forward-looking statements with respect to the financial condition, results of operations and business of Sequans, including the impact of the recently closed Qualcomm strategic transaction on our continuing
Slide 3: Sequans Key Highlights
Sequans Key Highlights • Leading semiconductor company specializing in $34.4M CY 2023 Annual Revenue1 wireless cellular technology for the Internet of Things (IoT) ~200 Team Worldwide • Unique expertise in designing 4G/5G connectivity solutions optimized for IoT, delivering breakthroughs in performa
Slide 4: 4G & 5G IoT Opportunity Is Expanding Globally
4G & 5G IoT Opportunity Is Expanding Globally Internet of Things (IoT) Global Revenue Global Revenue TAM for Cellular IoT Modules (in USD Billion) (in USD Millions) 7,000 6,000 $934 5,000 10% CAGR 4,000 3,000 $391 2,000 1,000 - 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2022 2023 2024 2025 20
Slide 5: Sequans' Unique Position Favored by Market Dynamics
Sequans’ Unique Position Favored by Market Dynamics Western Semiconductor Companies Serving the Cellular IoT Market to Cellular IoT Commitment Sequans is well positioned to capture a significant share of the cellular IoT market Cellular IoT Portfolio & Roadmap ©2024 Sequans Communications 5
Slide 6: $200 Million Asset Sale of 4G IoT Technology to Qualcomm
$200 Million Asset Sale of 4G IoT Technology to Qualcomm Transaction Transforms Balance Sheet Sequans Retains 4G License for Ongoing Use and Development • As of September 30, 2024, Sequans completed the asset sale of its 4G IoT technology (NB-IoT, LTE-M, and LTE Cat 1bis) to Qualcomm. Technology • S
Slide 7: Sequans: Leading in Cellular IoT
Sequans : Leading in Cellular IoT Solid Financial Best-in-Class Comprehensive Differentiated Foundation Technology & Expertise 4G & 5G IoT portfolio Go-to-market Strong balance sheet enables: • Endorsed by industry leaders • High-performance, low cost • Flexibility to support our • Design win projec
Slide 8: Legacy of Innovation, Leadership and Value Creation
Legacy of Innovation, Leadership and Value Creation Sequans Look Back Sequans Moving Forward • 2003 Co-founded by CEO, Georges Karam in • Exiting 2024 with strong Balance Sheet – France virtually debt-free and solid cash position • 2011 ADS listed on NYSE (Ticker: SQNS) • Built a Comprehensive 4G Io
Slide 9: Recognized by IoT Industry Leaders
Recognized by IoT Industry Leaders Tom Deitrich, CEO of Itron, leader in Smart Metering “Sequans is a strategic partner, allowing Itron to increase the value we can create for our customers and all stakeholders.” Derek Luke, COO of Geotab, leader in Connected Fleet and Asset “Sequans has always been
Slide 10: Portfolio Optimized for Cellular IoT
Portfolio Optimized for Cellular IoT Unique expertise in designing 4G & 5G semiconductor solutions optimized for IoT, delivering breakthroughs in performance, low-power, cost efficiency and security Leading 4G IoT Monarch LTE-M/NB-IoT Calliope Cat 1/Cat 1bis Low power, low speed Medium speed and voi
Slide 11: Addressing Key IoT Markets and Stakeholders
Addressing Key IoT Markets and Stakeholders Smart Meters Telematics Smart City Healthcare Asset Tracking Security Systems Smart Cities Payment Smart Home Tracker Wearable Space & Defense Industry Leaders Trust Sequans’ Technology ©2024 Sequans Communications 11
Slide 12: Product Revenue Pipeline
Product Revenue Pipeline Engagements and Qualified Opportunities Growth supported by a strong pipeline of 4G product revenue: With $250M of 3Y LNR in Design-Wins, And numerous advanced opportunities Product • Represents for each customer project, 3-years Design Wins of net revenue (3Y LNR) • IP and
Slide 13: Executing Growth Levers to Drive Future Performance
Executing Growth Levers to Drive Future Performance Product Revenue • Growth drivers 2025 – 2028 Growth supported by both existing and new D-Wins, 1. 4G Product revenue: and new products launches • Existing $250M of 3Y LNR pipeline D-Win projects moving to mass production • And new D-Wins, boosted b
Slide 14: Financial Overview
Financial Overview Quarterly Net Revenues Operating Expenses Cash & Cash Equivalents (in millions) (in millions) (in millions) $12.0 $173.6* $17.5 * $11.0 $10.1 $10.0 $9.7 $9.0 $14.5 $7.8 $11.8 $8.0 $7.0 $6.0 $13.1 $5.0 Sept. 30,2023 June 30, 2024 Sept. 30, 2024 Sept. 30, 2023 June 30, 2024 Sept. 30
Slide 15: Key Takeaways
Key Takeaways With a solid foundation built on : • Strong balance sheet, • Recognized expertise, • Comprehensive portfolio, and • Differentiated Go-To-Market strategy. Sequans is executing on a growth trajectory toward achieving break-even by 2026 ©2024 Sequans Communications 15
Slide 16: Thank you!
Sequans Investor Presentation Thank you! Investor Relations Contact: Kim Rogers, Hayden IR [email protected]
Slide 17: Appendix
Appendix • Leadership Team and Board of Directors • Income Statement • Balance Sheet • Non-IFRS Financial Results Reconciliation • Capitalization Table ©2023 Sequans Communications 17
Slide 18: Leadership Team and Board of Directors
Leadership Team and Board of Directors Leadership Team Board of Directors Visit www.sequans.com to view full management team, and bios ©2024 Sequans Communications
Slide 19: Preliminary Unaudited Condensed Consolidated Statements of Operations
PRELIMINARY UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS Three months e nded (in thous ands of US$, except share a nd per share am ounts) Sept 30, Sept 30, 202 4 (1 ) June 3 0, 202 4 202 3 Revenue : Pro duct revenue $ 2,357 $ 2,435 $ 753 License and services revenue 7,723 7,240 7,033 To
Slide 20: Preliminary Unaudited Condensed Consolidated Statements of Financial Position
PRELIMINARY UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION ©2023 Sequans Communications 20
Slide 21: Preliminary Unaudited Reconciliation of Non-IFRS Financial Results
PRELIMINARY UNAUDITED RECONCILIATION OF NON-IFRS FINANCIAL RESULTS ©2023 Sequans Communications 21
Slide 22: Capital – fully diluted as of October 31, 2024
Capital – fully diluted as of October 31, 2024 Shares ADS October 31, 2024 Total issued shares/ADS 249,973,692 24,997,369 Fully Diluted, assuming all warrants/SO exercised: Nokomis Warrants, $10.30/ADS exer price, exp 08/2026 594,680 59,468 Nokomis Warrants, $8.082/ADS exer price, exp 08/2026 1,244,
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