investor presentation june 21, 2018 - intrinsyc · 8 revenue model revenue gross margin $4k - $50k...

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1 www.intrinsyc.com Intrinsyc Proprietary & Confidential. © 2018 Intrinsyc Technologies Incorporated. All rights reserved. Investor Presentation June 21, 2018

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Page 1: Investor Presentation June 21, 2018 - Intrinsyc · 8 Revenue Model Revenue Gross Margin $4K - $50K X 18% - 25 % Revenue Gross Margin X 25% –50% $10K - $1.5M Gross Profit = $5K –$500K

1www.intrinsyc.comIntrinsyc Proprietary & Confidential. © 2018 Intrinsyc Technologies Incorporated. All rights reserved.

Investor PresentationJune 21, 2018

Page 2: Investor Presentation June 21, 2018 - Intrinsyc · 8 Revenue Model Revenue Gross Margin $4K - $50K X 18% - 25 % Revenue Gross Margin X 25% –50% $10K - $1.5M Gross Profit = $5K –$500K

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.

Page 3: Investor Presentation June 21, 2018 - Intrinsyc · 8 Revenue Model Revenue Gross Margin $4K - $50K X 18% - 25 % Revenue Gross Margin X 25% –50% $10K - $1.5M Gross Profit = $5K –$500K

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

Page 4: Investor Presentation June 21, 2018 - Intrinsyc · 8 Revenue Model Revenue Gross Margin $4K - $50K X 18% - 25 % Revenue Gross Margin X 25% –50% $10K - $1.5M Gross Profit = $5K –$500K

4www.intrinsyc.com

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

Page 5: Investor Presentation June 21, 2018 - Intrinsyc · 8 Revenue Model Revenue Gross Margin $4K - $50K X 18% - 25 % Revenue Gross Margin X 25% –50% $10K - $1.5M Gross Profit = $5K –$500K

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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

Page 6: Investor Presentation June 21, 2018 - Intrinsyc · 8 Revenue Model Revenue Gross Margin $4K - $50K X 18% - 25 % Revenue Gross Margin X 25% –50% $10K - $1.5M Gross Profit = $5K –$500K

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

Page 7: Investor Presentation June 21, 2018 - Intrinsyc · 8 Revenue Model Revenue Gross Margin $4K - $50K X 18% - 25 % Revenue Gross Margin X 25% –50% $10K - $1.5M Gross Profit = $5K –$500K

7www.intrinsyc.com

$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

Page 8: Investor Presentation June 21, 2018 - Intrinsyc · 8 Revenue Model Revenue Gross Margin $4K - $50K X 18% - 25 % Revenue Gross Margin X 25% –50% $10K - $1.5M Gross Profit = $5K –$500K

8www.intrinsyc.com

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

Page 9: Investor Presentation June 21, 2018 - Intrinsyc · 8 Revenue Model Revenue Gross Margin $4K - $50K X 18% - 25 % Revenue Gross Margin X 25% –50% $10K - $1.5M Gross Profit = $5K –$500K

9www.intrinsyc.com

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

Page 10: Investor Presentation June 21, 2018 - Intrinsyc · 8 Revenue Model Revenue Gross Margin $4K - $50K X 18% - 25 % Revenue Gross Margin X 25% –50% $10K - $1.5M Gross Profit = $5K –$500K

10www.intrinsyc.com

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

Page 11: Investor Presentation June 21, 2018 - Intrinsyc · 8 Revenue Model Revenue Gross Margin $4K - $50K X 18% - 25 % Revenue Gross Margin X 25% –50% $10K - $1.5M Gross Profit = $5K –$500K

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Client Relationships

Page 12: Investor Presentation June 21, 2018 - Intrinsyc · 8 Revenue Model Revenue Gross Margin $4K - $50K X 18% - 25 % Revenue Gross Margin X 25% –50% $10K - $1.5M Gross Profit = $5K –$500K

45%CAGR

2 0 1 4 - 2 0 1 7

Page 13: Investor Presentation June 21, 2018 - Intrinsyc · 8 Revenue Model Revenue Gross Margin $4K - $50K X 18% - 25 % Revenue Gross Margin X 25% –50% $10K - $1.5M Gross Profit = $5K –$500K

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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

Page 14: Investor Presentation June 21, 2018 - Intrinsyc · 8 Revenue Model Revenue Gross Margin $4K - $50K X 18% - 25 % Revenue Gross Margin X 25% –50% $10K - $1.5M Gross Profit = $5K –$500K

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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

Page 15: Investor Presentation June 21, 2018 - Intrinsyc · 8 Revenue Model Revenue Gross Margin $4K - $50K X 18% - 25 % Revenue Gross Margin X 25% –50% $10K - $1.5M Gross Profit = $5K –$500K

Growth Strategy

Page 16: Investor Presentation June 21, 2018 - Intrinsyc · 8 Revenue Model Revenue Gross Margin $4K - $50K X 18% - 25 % Revenue Gross Margin X 25% –50% $10K - $1.5M Gross Profit = $5K –$500K

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2018(9) Computing Modules +

(13) Development/Reference Platforms

2014(2) Computing Modules +(2) Development Platforms

Broadening Product PortfolioGrowth Strategy

Page 17: Investor Presentation June 21, 2018 - Intrinsyc · 8 Revenue Model Revenue Gross Margin $4K - $50K X 18% - 25 % Revenue Gross Margin X 25% –50% $10K - $1.5M Gross Profit = $5K –$500K

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Expanding TechnologyPartnerships

Growth Strategy

2018

2014

Page 18: Investor Presentation June 21, 2018 - Intrinsyc · 8 Revenue Model Revenue Gross Margin $4K - $50K X 18% - 25 % Revenue Gross Margin X 25% –50% $10K - $1.5M Gross Profit = $5K –$500K

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Geographic Sales Expansion Growth Strategy

72% of Market Opportunity is outside of N.A.

Page 19: Investor Presentation June 21, 2018 - Intrinsyc · 8 Revenue Model Revenue Gross Margin $4K - $50K X 18% - 25 % Revenue Gross Margin X 25% –50% $10K - $1.5M Gross Profit = $5K –$500K

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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%+

Page 20: Investor Presentation June 21, 2018 - Intrinsyc · 8 Revenue Model Revenue Gross Margin $4K - $50K X 18% - 25 % Revenue Gross Margin X 25% –50% $10K - $1.5M Gross Profit = $5K –$500K

20www.intrinsyc.com

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

Page 21: Investor Presentation June 21, 2018 - Intrinsyc · 8 Revenue Model Revenue Gross Margin $4K - $50K X 18% - 25 % Revenue Gross Margin X 25% –50% $10K - $1.5M Gross Profit = $5K –$500K

21www.intrinsyc.com

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

Page 22: Investor Presentation June 21, 2018 - Intrinsyc · 8 Revenue Model Revenue Gross Margin $4K - $50K X 18% - 25 % Revenue Gross Margin X 25% –50% $10K - $1.5M Gross Profit = $5K –$500K

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

Page 23: Investor Presentation June 21, 2018 - Intrinsyc · 8 Revenue Model Revenue Gross Margin $4K - $50K X 18% - 25 % Revenue Gross Margin X 25% –50% $10K - $1.5M Gross Profit = $5K –$500K

23www.intrinsyc.com

Thank You!

Design • Develop • Build

/IntrinsycTech

@IntrinsycTech

Intrinsyc Technologies Corporation

Intrinsyc.com

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