investor presentation june 21, 2018 - intrinsyc · 8 revenue model revenue gross margin $4k - $50k...
TRANSCRIPT
1www.intrinsyc.comIntrinsyc Proprietary & Confidential. © 2018 Intrinsyc Technologies Incorporated. All rights reserved.
Investor PresentationJune 21, 2018
Safe HarborStatement
This presentation contains statements which, to the extent that they are not recitations of historical fact, may constitute forward-looking information under applicable Canadian securities legislation that involve risks and uncertainties. Such forward-lookingstatements or information may include financial and other projections as well as statements regarding the Company's future plans,objectives, performance, revenues, growth, profits, operating expenses or the Company's underlying assumptions.
Actual results, performance, or developments could differ materially from those expressed or implied by the forward lookingstatements contained in this presentation as a result of known and unknown risks, uncertainties, and other factors including thoseidentified in the Company's reports filed on SEDAR, including its Annual Information Form and financial report for the year endedDecember 31, 2017. This list is not exhaustive of the factors that may affect the Company’s forward-looking information.
These and other factors should be considered carefully and readers should not place undue reliance on such forward-lookinginformation. All forward-looking statements made in this presentation are qualified by this cautionary statement and there can be noassurance that actual results or developments anticipated by the Company will be realized. The Company disclaims any intention orobligation to update or revise forward-looking information, whether as a result of new information, future events or otherwise, exceptas required by law.
3www.intrinsyc.com
Internetof Things (IoT)
Internet of Things Smartphones/Tablets Drones/Robotics Wearables
Retail/Digital Signage In-Flight Entertainment Automotive Health & Fitness
Home Automation Military/Security360 & Action Cameras Virtual Reality
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Substantial Market Growth Expected
“Over the next five years, humans will more
than triple the number of “things”
connected to the Internet, growing them
from 15 billion today to 50 billion by 2020.”
Number of “Things”
connected tothe Internet
15bn2015
CAGR:27%
50bn
2020
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Trends Driving Growth
Intelligence at the Edge - Higher Computing
Power
Faster Connectivity
Mobile Technology Adopted to IoT and
Automotive
Shorter Product Innovation Cycle
Development Kits, References Designs, and Production-Ready ComputingModules
Product Portfolio
Open-Q™ 845 HDK Dev Kit
Snapdragon™ Flight
Open-Q™ 835 HDK System On Module
Snapdragon™ Automotive Platform
Open-Q™ 410 System On Module
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$2.7B Total Addressable Market
Computer-On-Module Annual Revenue (US$M)
600750
9501090
12501400
15501750
21002400
2700
0
500
1000
1500
2000
2500
3000
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
MARKET SIZE BY VALUE
Source: QYR Electronics Research Center, April 2017
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Revenue Model
Revenue
Gross Margin
$4K - $50K
X 18% - 25%
Revenue
Gross Margin X 25% – 50%
$10K - $1.5M
= $5K – $500KGross Profit
Revenue per Unit $50 - $300
Gross Margin X 10% - 25%
$10 - $60= $1K - $12KGross ProfitGross Profit Per Unit
Royalty per Unit $0 - $10
100 – 50K units sold per year, over 1- 7 years
Non-Recurring Engineering Repeat Production Hardware
Recurring Royalty
Development Kits
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Path to Recurring Revenue
Prospect/Qualify/Bid
Design Win/Development Production
• Development
Kit Sales
1 – 24 Months
Prospect
• Product
Development Phase
– NRE Fees
6 – 12 Months
Design-Win
• Prototypes and
Marketing Unit
Sales
3 – 12 Months
Pilot Production
• Volume Computing Module
Sales or Design Royalties
(Margins improve with age)
1 – 8 Years
Commercial Release
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5 711 13 14 16 17 19 19 20
23 2429
23
45
9
1215
1919
21
23
0
10
20
30
40
50
60
FY15 Q1 FY15 Q2 FY15 Q3 FY15 Q4 FY16 Q1 FY16 Q2 FY16 Q3 FY16 Q4 FY17 Q1 FY17 Q2 FY17 Q3 FY17 Q4 FY18 Q1
Design Win In-Production
Rapidly Growing Client Base
Design Wins and In-Production Totals
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Client Relationships
45%CAGR
2 0 1 4 - 2 0 1 7
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$5.5$8.3
$10.4$8.1
$2.8
$4.2
$7.1 $12.4
$-
$5.0
$10.0
$15.0
$20.0
$25.0
FY14 Annual FY15 Annual FY16 Annual FY17 Annual
Services and Software Computing Hardware
64% CAGR Hardware Revenue Since 2014
Annual Revenue (US$M)
$20.6M
$8.3M
$12.5M
$17.5M
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$0.4
$1.7 $1.8
$0.8
$(0.2)
$0.7
$1.7
$0.6
$(0.5)
$-
$0.5
$1.0
$1.5
$2.0
FY14 Annual FY15 Annual FY16 Annual FY17 Annual
Adjusted EBITDA Net Income
Consistent Profitability
Annual Adjusted EBITDA and Net Income (US$)Annual Adjusted EBITDA and Net Income (US$)
Increased Product Development in 2017
Growth Strategy
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2018(9) Computing Modules +
(13) Development/Reference Platforms
2014(2) Computing Modules +(2) Development Platforms
Broadening Product PortfolioGrowth Strategy
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Expanding TechnologyPartnerships
Growth Strategy
2018
2014
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Geographic Sales Expansion Growth Strategy
72% of Market Opportunity is outside of N.A.
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Drive Scale to Improve Hardware Margins and Operational Efficiencies
Growth Strategy
~$7M in Hardware Revenue Growth= 1% Gross Margin Improvement
Currently 22% - Long-term goal is 28%+
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Strong Financial Position at March 31, 2018
Cash: US $6.9M
Net Working Capital: US $12.6M
No Debt
Line of Credit: CDN $4.4M
Tax Shield: US $31.7M
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Market Cap: CDN $31.5M(inclusive of US$6.9 million cash)
Total Shares Outstanding: 21.0M
Shares Owned byManagement and Directors: 13.2%
NCIB Share Buyback up to 500,000 shareswith 195,000 purchased as at March 31/18
Share Information
22www.intrinsyc.com
A Compelling Investment
Focused on High
Growth IoT
Market
Positive Industry
Macro Trends
Driving Growth
Strong Technology
Partnerships
Expanding and
Maturing Client
base
Repeat Revenue
Model
Expanding Product
Portfolio
Revenue Scale to
Drive Margin
Improvement
Strong Balance
Sheet
23www.intrinsyc.com
Thank You!
Design • Develop • Build
/IntrinsycTech
@IntrinsycTech
Intrinsyc Technologies Corporation
Intrinsyc.com
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