Investor Presentation Nordea Small & Mid Cap Conference. August 2016

Transcription

1 Investor Presentation Nordea Small & Mid Cap Conference August

2 Tobii the global leader in eye tracking World leader in eye tracking SEK million Founded in 2001 Headquartered in Sweden, with 14 offices across Europe, North America and Asia Europe 23% Rest of world 13% North America 64% employees 621 IPO on Nasdaq Stockholm April 2015 Three strong business units:

3 How eye tracking works 3

4 Eye tracking = your device understands you What you are paying attention to What information you are processing Presence, identity, focus, drowsiness 4

5 Eye tracking provides benefits in many fields Assistive technology Research Mainstream computers VR & AR Provides the ability to communicate to people with special needs Unique insights into human behavior and consumer responses New user interfaces for computers and tablets with builtin eye tracking Optimize VR graphics, and enable new interactive experiences Gaming Automotive Specialty applications Mobile Devices Raise game immersion and intensity to new levels for a large set of enthusiast gamers Monitor and warn drivers for drowsiness and inattention Numerous new areas such as diagnostics, process industry and security Create smart interfaces that adapt to the attention of the user 5

6 Three strong, independent business units Global leader in assistive technology for communication Global leader in eye tracking solutions for research Leading eye-tracking components and platforms for integration customers 3/4 of Tobii Group s sales 1/5 of Tobii Group s sales 5% of Tobii Group s sales 6

7 Tobii Dynavox Tobii Dynavox Tobii Pro Tobii Tech World leader in assistive technology for communication, computer access and special education Our products enable tens of thousands of users to speak and interact effectively 3/4 of Tobii Group sales 7

8 Provides our users with the profound benefit of speech and communication Tobii Dynavox Tobii Pro Tobii Tech ALS Spinal cord injury Aphasia Cerebral palsy Rett syndrome Autism Parkinson s Muscular dystrophy 8

9 Tobii Dynavox Tobii Pro Tobii Tech Significant unmet need 0.5-1% of the global population (50 million people) truly need assistive technology to communicate effectively 1) Addressable market in top-10 countries with reimbursement is 3M people Current penetration in top-10 countries with reimbursement for communication devices Penetrated - 10% Effective reimbursement is only available in a few countries: USA, Canada, German speaking, Scandinavia, UK, Netherlands and Australia Unpenetrated - 90% 1) Arthur D. Little; 9

10 Sales split (2015) Tobii Dynavox Tobii Pro Tobii Tech Superior product portfolio MEDICAL-GRADE EYE TRACKING SOLUTIONS MEDICAL-GRADE TOUCH SOLUTIONS NON-MEDICAL EYE TRACKING SOLUTIONS SPECIAL EDUCATION SOFTWARE COMMUNICATION APPS Speech generating devices controlled via built in eye tracker Medical grade Communicator and Compass software Speech generating devices controlled by touch technology Medical grade Powerful speakers and rugged design Compass software Eye trackers connected via USB to any windows based computer or tablet Non-Medical grade Used by teachers to make and adapt school materials and education plans for special needs students 250,000 active users Enabling communication through the advantages and wide adoption of consumer tablets 59% 27% 4% 9% 1% 10

11 Tobii Dynavox Tobii Pro Tobii Tech Clear market leader in assistive technology for communication 45% 11

12 Investing to drive long-term growth Tobii Dynavox Tobii Pro Tobii Tech Strategic focus areas Highlights so far this year Increase public awareness, and educate and train prescribers Viral videos reaching millions Gleason movie Large-scale trainings Develop products that more effectively address specific needs and conditions Launched PCEye Mini, I-Series+ upgrade, Snap Scene Investing in new devices and software titles Strengthen channels and offerings for private purchase and schools, to complement medical-grade reimbursed market E-commerce launched in the UK as the first market Developing low-price products Expand geographically Sales office in the UK First product specifically for Chinese market Strong growth from low levels in several emerging markets 12

13 Tobii Dynavox Tobii Pro Tobii Tech Financials for Tobii Dynavox 67% 70% 70% 73% 75% 74% 71% 70% 70% % Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Revenue increased 5% over Q2 2015, and by 9% adjusted for currency effects. Higher revenue in the US, primarily due to one-time effects from Steve Gleason Act Lower sales in Europe (price reductions and slower sales in the UK) 20% 14 14% 16% 13% 14% Revenue (SEK million) Gross margin 14% 14% 20% 1% 5% Gross margin decreased to 70% (75%) Reallocation of some costs from sales and admin to COGS (no EBIT impact) Price reductions in Europe EBIT margin was 14% (13%) Large R&D investments Investments in e-commerce solutions and increased sales and marketing organizations in both US and Europe Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q EBIT (SEK million) EBIT margin

14 Financial target Tobii Dynavox Tobii Pro Tobii Tech Tobii Dynavox s long-term target is to deliver a top-line growth in excess of 10% with an EBIT margin of 20%. 14

15 Tobii Pro The undisputed market leader in solutions for eye tracking research Eye tracking provides valuable insights to commercial and academic customers Tobii sells solutions including eye tracking hardware, analytics software and services 1/5 of Tobii Group sales 15

16 Tobii Dynavox Tobii Pro Tobii Tech We have entered the Attention Economy 16

17 We measure real consumer attention Tobii Dynavox Tobii Pro Tobii Tech Truly objective. No fluff. What catches your interest? What keeps your attention? What information do you process? What drives your actions for instance a purchase decision? 17

18 Tobii Dynavox Tobii Pro Tobii Tech Tobii Pro serves researchers with insights in many different fields Usability testing Package design Sports research Advertizing Vision research Shopper research Performance analysis Neuroscience Psychology 18

19 Tobii Dynavox Tobii Pro Tobii Tech Market research alone is a USD 40 bn per year market 19

20 Leading product portfolio Tobii Dynavox Tobii Pro Tobii Tech EYE TRACKING HARDWARE RESEARCH SOFTWARE SERVICES Desktop research eye trackers Scientific high-speed eye trackers Wearable eye trackers Software suite for research & analysis Cloud-based solutions Custom research services Consultation Training academy Sales split (2015) 1 64% 22% 10% 1) Other sales of 5% mainly includes accessories 20

21 Strong customer base Tobii Dynavox Tobii Pro Tobii Tech 3,000 commercial customers and 2,000 academic customers including 18 of top 20 global advertisers including all 50 of top 50 universities 1 Massachusetts Institute of Technology (MIT) 26 Duke University 2 University of Cambridge 27 University of California, Berkeley (UCB) 2 Imperial College London 28 The University of Hong Kong 4 Harvard University 29 University of Bristol 5 University of Oxford 30 The University of Manchester 5 UCL (University College London) 31 The University of Tokyo 7 Stanford University 31 Seoul National University 8 California Institute of Technology (Caltech) 33 The University of Melbourne 9 Princeton University 34 Northwestern University 10 Yale University 35 Ecole Polytechnique 11 University of Chicago 36 Kyoto University 12 ETH Zurich 37 UCLA and 4 of top 5 market research companies 13 University of Pennsylvania 37 The University of Sydney 14 Columbia University 39 Nanyang Technological University (NTU) 14 Johns Hopkins University 40 The Hong Kong Univ. of Science and Techn. 16 King's College London (KCL) 41 New York University (NYU) 17 University of Edinburgh 41 University of Wisconsin-Madison 17 EPFL (Ecole Polyt. Fédérale de Lausanne) 43 University of British Columbia 19 Cornell University 43 The University of Queensland 20 University of Toronto 45 University of Copenhagen 21 McGill University 46 The Chinese University of Hong Kong 22 National University of Singapore (NUS) 47 Tsinghua University 23 University of Michigan 48 The University of New South Wales 24 Ecole normale supérieure, Paris 49 Ruprecht-Karls-Universität Heidelberg 25 The Australian National University 50 University of Amsterdam Source: Nielsen Global AdView Pulse Q3 2012, ESOMAR 2014 report, QS World University Rankings 2014/

22 Clear market leader in eye tracking solutions for research Tobii Dynavox Tobii Pro Tobii Tech 48% Arthur D. Little; based on 2013 estimate. 22

23 Investing to drive long-term growth Tobii Dynavox Tobii Pro Tobii Tech Strategic focus areas Highlights so far this year Drive awareness and acceptance of eye tracking as a research method in existing and new segments Viral videos reaching millions Lots of webinars, seminars and other marketing Strengthen the offering of both high-end and low-end hardware and software Glasses 2 opens up new segments Upgraded analytics software Next-generation products are in the works, both for high-end research and entry-level solutions Grow the services business Tobii Insight Strong business growth with repeat customers Growing the team of consultants, expanding in Sweden, Japan, USA, and the UK. Explore in-home panels and other volume opportunities Setting up the first in-home panel in Sweden 23

24 Tobii Dynavox Tobii Pro Tobii Tech Financials for Tobii Pro 78% 72% 69% 70% % 75% 74% 72% % 59 72% 53 Revenue increased 15% over Q2 2015, and by 16% adjusted for currency effects Strong sales of Glasses 2 and X3-120 Strong sales of Insight research services Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q Revenue (SEK million) Gross margin 22% 17% 13% 10% 8% 14 2% 5% 0% % 6-5% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Gross margin was 72% (74%) Reallocation of some costs from sales and admin to COGS (no EBIT impact) EBIT margin was -5% (2%) 50% higher R&D spend EBIT (SEK million) EBIT margin

25 Financial target Tobii Dynavox Tobii Pro Tobii Tech Tobii Pro s long-term target is to deliver a top-line growth in excess of 15% with an EBIT margin in excess of 15%. In the mid term (next 2-3 years), our goal is to deliver a top-line growth of 10% with an EBIT margin of 10%. 25

26 Tobii Tech Provides core eye tracking technology to OEM volume customers Customers integrate the technology into their products Investment phase to evolve Tobii Technology s world-leading technology to suit the mass market and to grow eco-system of software applications 6% of Tobii Group sales 26

27 Tobii Dynavox Tobii Pro Tobii Tech Tobii Tech targets volume opportunities in several fields Gaming VR & AR Mainstream computers Automotive Specialty applications Mobile devices 27

28 Very large potential markets Tobii Dynavox Tobii Pro Tobii Tech VR HEADSETS 25M PC GAMING 70M global performance PC gamers 2 PCs & LAPTOPS 300M units 1 TABLETS 300M units 1 1) Estimated annual volumes Source: Statista; 2) Source: Jon Peddie,

29 Tobii Tech provides the platforms, components, algorithms and IP Tobii Dynavox Tobii Pro Tobii Tech EYE TRACKING PLATFORMS FOR INTEGRATION COMPONENTS LICENSES Standardized eye tracking platforms ready for integration by OEM customers straight into their products Key components and reference design are also sold separately Allows OEM customers to integrate eye tracking to their own boards and platforms Reference designs Application software Algorithms (when not embedded in chip) IP 29

30 New IS4 eye-tracker platform is shipping Tobii Dynavox Tobii Pro Tobii Tech Shipping since May in I-series+ and PC Eye Mini Strong positive feedback on performance 30

31 Tobii Dynavox Tobii Pro Tobii Tech PC Gaming: Traction, but still early days MSI launched first gaming laptop with Tobii Eye Tracking in Q1 Concrete projects with additional partners to integrate Tobii Eye Tracking in specific upcoming models of premium gaming notebooks and desktop monitors Now 40 games with support for Tobii Eye Tracking, and good pipeline. More needed! 31

32 Tobii Dynavox Tobii Pro Tobii Tech VR & AR heating up Strong interest in eye tracking for virtual and augmented reality Technology development progressing well Deeper dialogues with potential customers and other partners 32

33 Tobii Dynavox Tobii Pro Tobii Tech Mobile Devices Developing basic form of our technology suitable for mobile devices Ongoing commercial discussions 33

34 Significant technology advantage Tobii Dynavox Tobii Pro Tobii Tech TRACKING ROBUSTNESS ACCURACY Outstanding reliability to track a user s gaze direction regardless of varying physical attributes of the user s eye and ambient conditions Outstanding accuracy to enable "pointing" with the eyes at reasonably small objects. Even when user moves, and in ambient light COST USER EXPERIENCE Low production cost Low power consumption Small physical footprint EyeX Interaction Developer eco-system EyeX Engine 34

35 Tobii Dynavox Tobii Pro Tobii Tech Tobii has the world s largest collection of patents related to eye tracking >200 granted and applied patents, across >90 distinct inventions Portfolio covers many aspects of eye tracking, ranging from hardware and algorithms to many forms of eyegaze interaction ) Independent study conducted by ClearView IP. European and US patents only. Patents specifically related to medical/ophthalmology products excluded 2) Include patens related to automotive and wearables 35

36 Tobii Dynavox Tobii Pro Tobii Tech Financials for Tobii Tech 72% 46% % 9 37% 42% 45% 48% 49% 41% % 18 Revenue still very modest, and a majority came from sales of eye tracker platforms to Tobii Dynavox and Tobii Pro Revenue increased 43% over Q Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q Revenue (SEK million) Gross margin Gross margin was 50% (45%) Lower production cost with IS4 vs previous platforms Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 EBIT loss amounted to -52 MSEK (-39) Increased R&D spend Increased marketing spend EBIT (SEK million) 36

37 Financial target Tobii Dynavox Tobii Pro Tobii Tech Tobii Tech s goal is to become cash flow positive during Until then, the business unit plans for SEK 400 million negative cash flow due to significant investments in core technology. 37

38 38 Tobii Group

39 Tobii Group, Revenue Revenue and Gross Margin 76% 76% 70% 74% 71% 72% 72% 73% 73% % Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q Revenue increased 8% over Q2 2015, and by 12% adjusted for currency effects Gross margin 73% compared to 76% last year Impacted by reallocation of some costs from sales and admin to COGS. The allocation have no effect on EBIT Revenue (SEK million) Gross margin Revenue (SEK milion) Tobii Dynavox Tobii Pro Tobii Tech Group Jan-Jun 2015 Jan-Jun 2016

40 Tobii Group, EBIT EBIT (SEK million) Group EBIT -29 MSEK (-17) EBIT in Tobii Dynavox and Tobii Pro in line with last year: 23 MSEK (23) EBIT in Tobii Tech -52 MSEK (-39), 13 MSEK lower due to higher spend on R&D and Sales & Marketing activities Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q EBIT (SEK m) Tobii Dynavox Tobii Pro Tobii Tech Group EBIT for Tobii Group 12 MSEK lower than last year Increased net R&D spend due to lower capitalization of R&D Increased investments in marketing and business development Jan-Jun 2015 Jan-Jun 2016

41 Balance Sheet & Cash Flow Tobii Group (MSEK) Q Q Total Assets Equity Equity Ratio Net Cash (+)/Net Debt(-) Cash flow after continuous investments Q1 Q2 Q3 Q4 Q1 Q Cash flow after Investments Strong balance sheet with high Equity ratio of 76% Strong cash position +348 in Cash no loans Current unutilized bank facilities 170 MSEK Cash flow impacted by the high investment level in R&D and sales and marketing activities 41

42 Summary Proven technology with strong unique benefits in large markets Global technology and market leadership THE WORLD LEADER IN EYE TRACKING Profitable Clear no. 1 position Market with significant unmet needs support longterm growth opportunity Profitable Clear no. 1 position Long-term growth opportunity by driving use beyond early adopters Eye tracking technology leadership World s largest eye tracking IP portfolio Multiple large volume opportunities Will require time and investments 42