April 27, 2017 1
Welcome to our presentation of the Q1 2017 interim report Henrik Eskilsson, CEO Tomas Kihlstrand, Interim CFO 2
The Tobii Group and its business units Large investments to drive long-term growth in all three business units Continued organizational expansion: Added nearly 100 employees in past 12 months, now over 750 employees Slower sales in Tobii Dynavox and Tobii Pro, rapid growth in Tobii Tech 3
Tobii Dynavox Global leader in assistive technology for communication Market share close to 50% Provides products that enable tens of thousands of users with special needs to speak and communicate effectively Reimbursed through public and private insurance systems Share of the Group s sales 67% 4
Two strategically very important product launches Indi speech tablet Snap communication software www.tobiidynavox.com/indi/ 5
Indi speech tablet The world s first all-in-one speech tablet for touch-based communication Very powerful speakers, semirugged, right ergonomics, accessories and services Pricing starts at $999, including state of the art software Meet Hunter and his power to express himself - Tobii Dynavox Indi 6
Snap communication software Tobii Dynavox new symbolbased communication software Clinically proven with the CoreFirst language system Much easier to use, much more responsive, much more capable than previous software offering Accompanied by Pathways for Snap therapist in a box Tobii Dynavox Snap + Core First The power to fulfill my potential 7
A differentiated product range for the touch device segment Medical grade solutions T7, T10, T15 Consumergrade solutions Indi with Snap Pure apps Snap as a pure app 8
Tobii Dynavox Q1 financials Revenue decreased 3%, or 7% adjusted for currency effects One-time effect from Steve Gleason Act in comparison quarter Strong sales increase in Europe outside UK, weaker sales in the US Effects of price reductions made in April 2016 Slow sales on our older touch products Weak sales in UK due to switch to direct sales Stable gross margin EBIT margin at 11% Revenue (SEK million) and Gross Margin 73% 75% 70% 74% 71% 70% 71% 71% 70% 219 167 173 182 188 205 182 187 182 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2015 2016 2017 EBIT (SEK million) and EBIT Margin 45 26 26 22 20% 17% 14% 14% 41 31 27 25 20 14% 14% 17% 20% 11% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2015 2016 2017 9
Tobii Pro World leader in eye-tracking solutions for understanding human behavior Market share close to 50% Provides eye tracker hardware and analysis software, plus market research consulting 2,000 academic and 3,000 commercial customers Share of the Group s sales 22% 10
Tobii Pro Q1 highlights Continued strong sales of Glasses 2 in traditional and new verticals New research eye tracker Tobii Pro Spectrum and analysis software Pro Lab were received well What does a pianist see? Study of expert vs novice. 11
Tobii Pro Q1 financials Revenue increased 3 %, but decreased 1% adjusted for currency effects Sales increased by around 5% when adjusted for both currency and order backlog effects. Gross margin at 75% (73%) Revenue (SEK million) and Gross Margin 72% 78% 73% 72% 72% 76% 75% 75% 74% 74 65 54 59 53 58 61 46 44 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2015 2016 2017 EBIT margin at 0% (10%) Order backlog effects Investments in sales and marketing EBIT (SEK million) and EBIT Margin 13% 17% 2% 5% 10% -5% 0% 16% 0% 7 2 11 12 1 6-3 0 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2015 2016 2017 12
Tobii Tech Leading supplier of eye tracking technology to integration customers Targets high volume markets such as PC gaming, mainstream computers, virtual reality, smartphones, and specialized markets Share of the Group s sales 11% 13
Tobii Tech Q1 highlights Continued good progress in PC games New titles include Dying Light, Rise of the Tomb Raider, Tom Clancy s Ghost Recon, Soma and Warhammer Vermintide Acer announced the Aspire V17 Nitro with Tobii Eye Tracking Strong focus on VR with major trade shows as GDC and SVVR R&D collaboration with Valve resulted in demo version of HTC Vive headset with integrated eye tracking Solus first VR title with Tobii eye tracking 14
Tobii Tech Q1 financials Revenue increased 82% over Q1 2016, and 76% adjusted for currency effects External sales increased 290% Gross margin was 41% (41%) Operating loss amounted to -76 MSEK (-49) Increased R&D spend Increased marketing spend Revenue (SEK million) and Gross Margin 42% 45% 48% 49% 41% 50% 48% 39% 41% 41 29 18 21 15 16 18 13 13 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2015 2016 2017 EBIT (SEK million) 2015 2016 2017 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1-41 -39-37 -59-49 -52-42 -64-76 15
Tobii Group Q1 financials revenue Revenue increased 4% year-overyear Decreased 1% adjusted for currency effects Gross margin was 71% (73%) Increased sales from Tobii Tech Changes in product mix Price reductions on certain products in Tobii Dynavox Revenue (SEK million) and Gross Margin 76% 76% 74% 72% 73% 73% 73% 71% 71% 287 306 229 252 222 228 241 255 261 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2015 2016 2017 Revenue per business unit (SEK m) 252 261 188 182 59 61 16 29 Tobii Dynavox Tobii Pro Tobii Tech Group Q1 2016 Q1 2017 280 240 200 160 120 80 40 0 16
Tobii Group Q1 financials EBIT Group EBIT was -56 MSEK (-17) Tobii Dynavox contributed 20 MSEK Tobii Pro was neutral Tobii Tech impacted the Group earnings -76 MSEK Impacted by increased investments in R&D, sales and marketing EBIT for the Group (SEK million) 2015 2016 2017 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1-8 -8-3 -11-10 -17-17 -29-56 3 EBIT per business unit (SEK million) 27 20 6 0-37 -77-17 -49-56 -76 Tobii Dynavox Tobii Pro Tobii Tech Group Q1 2016 Q1 2017 17
Balance sheet and cash flow Cash flow continued to be impacted by high investments within mainly R&D, MSEK 105 in Q1 2017 Strong Balance Sheet with Equity ratio of 81% Strong cash position, MSEK 730 Group balance and cashflow summary Group cashflow after continuous investments Tobii Group (MSEK) Q1 2017 Q1 2016 Q4 2016 7 7 2 Total Assets 1 439 1 007 1 487 Equity 1 166 774 1 215 Equity Ratio 81 77 82 Net Cash (+)/Net Debt(-) 730 371 772-39 -16-32 -21-23 -45 Cash flow after continuous investments -45 2-23 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2015 2016 2017 18
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