investor presentation august, 2018 - amazon s3€¦ · investor presentation august, 2018. safe...
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1www.intrinsyc.comIntrinsyc Proprietary & Confidential. © 2018 Intrinsyc Technologies Incorporated. All rights reserved.
Investor Presentation
August, 2018
Safe Harbor
StatementThis 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-looking statements 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 looking statements
contained in this presentation as a result of known and unknown risks, uncertainties, and other factors including those identified in the
Company's reports filed on SEDAR, including its Annual Information Form and financial report for the year ended December 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-looking information. All
forward-looking statements made in this presentation are qualified by this cautionary statement and there can be no assurance that actual
results or developments anticipated by the Company will be realized. The Company disclaims any intention or obligation to update or revise
forward-looking information, whether as a result of new information, future events or otherwise, except as required by law.
3www.intrinsyc.com
Internet
of 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
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 to the
Internet
15bn2015
CAGR:
27%
50bn
2020
5www.intrinsyc.com
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
Computing
Modules
Product Portfolio
Open-Q™ 845 HDK Dev Kit
Snapdragon™ Flight
Open-Q™ 835 Micro System On Module
Snapdragon™ Automotive Platform
Open-Q™ 410 System On Module
7www.intrinsyc.com
$2.7B Total Addressable Market
Computer-On-Module Annual Revenue (US$M)
600750
950 10901250
14001550
17502100
24002700
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
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 Profit
Gross 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
9www.intrinsyc.com
Path to Recurring Revenue
Prospect/
Qualify/BidDesign 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
10www.intrinsyc.com
Rapidly Growing Client Base
Design Win = Client Commercial Products in Development That Are Using or Will Use Intrinsyc Computing Platform
59 10
19 22 22 25 25 25 24 25 28 30 27
1
1 2
66 8
8 11 14 18 19
2224
26
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 FY18 Q2
Design Wins and In-Production Totals
Design Win In Production
11www.intrinsyc.com
Client Relationships
45%CAGR
2 0 1 4 - 2 0 1 7
13www.intrinsyc.com
$5.5
$8.3 $10.4
$8.2
$2.8
$4.2
$7.1 $12.5
$-
$5.0
$10.0
$15.0
$20.0
$25.0
FY14 Annual FY15 Annual FY16 Annual FY17 Annual
Annual Revenue (US$M) Services and Software Computing Hardware
64% CAGR Hardware Revenue Since 2014
$20.7M
$17.5M
$12.5M
$8.3M
14www.intrinsyc.com
$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
16www.intrinsyc.com
2018(9) Computing Modules +
(13) Development/Reference Platforms
2014(2) Computing Modules +
(2) Development Platforms
Broadening Product Portfolio
Growth Strategy
17www.intrinsyc.com
Expanding Technology
Partnerships
Growth Strategy
2018
2014
18www.intrinsyc.com
Geographic Sales Expansion
Growth Strategy
72% of Market
Opportunity is
outside of N.A.
19www.intrinsyc.com
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%+
20www.intrinsyc.com
Q2 ResultsSt rong Revenue Growth , EB ITDA , Booked Order s , and Back log
Revenue: $6.4M - up 40% from previous year
EBITDA: $450K – up 377% from previous year
Record Booked Sales - $8M +
$5.4M Subsequent Booked Order in July
Record Order Backlog as of July 31, 2018
21www.intrinsyc.com
Strong Financial Position at June 30, 2018
Cash: US $7.5M
Net Working Capital: US $10.8M
No Debt
Line of Credit: CDN $4.4M
Tax Shield: US $31.7M
22www.intrinsyc.com
Market Cap: CDN $31.6M
(inclusive of US$7.5 million cash
@ June 30/18)
Total Shares Outstanding: 21.0M
Shares Owned by
Management and Directors: 14.0%
NCIB Share Buyback up to 500,000 shares
with 398,900 purchased
Share Information @ August 28, 2018
23www.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
24www.intrinsyc.com
Thank You!
Design • Develop • Build
/IntrinsycTech
@IntrinsycTech
Intrinsyc Technologies Corporation
Intrinsyc.com
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