May 4, 2016 Henrik Eskilsson, CEO Esben Olesen, CFO 2 Tobii is - - PowerPoint PPT Presentation

May 4, 2016

Henrik Eskilsson, CEO Esben Olesen, CFO

2

Tobii is the global leader in eye tracking

• World leader in eye tracking
• Founded in 2001
• Headquartered in Sweden, with 14
• ffices across Europe, North America

and Asia

• 650+ employees
• Three strong business units:

3

Sales per region (Q1 2016)

Rest of world 13% Europe 25% North America 62%

Tobii Dynavox

• Global leader in assistive

technology for communication

• Market share close to 50%
• Provides products that enable tens
• f thousands of users with special

needs to speak and communicate effectively

• Reimbursed through public and

private insurance systems

4

3/4 of Tobii Group’s sales

• Clip with Ian in Argentina:

https://www.facebook.com/ajplusenglish/ videos/673299416144902/

• Clip with James and the fund raising for

his eyegaze device: https://www.youtube.com/watch?v=MI4G u8k0vt8&feature=youtu.be

• Follow-up clip with James’ teacher:

https://www.youtube.com/watch?v=SHw 3EnN5wKs

Awareness and knowledge are key drivers for long-term growth

5

Tobii Dynavox Tobii Pro Tobii Tech

• Launched PCEye Mini, based on the new IS4 eye-tracker platform
• Launched a touch device specifically for the Chinese market
• Increasing R&D investments during 2016

Product development

6

PC Eye Mini

Tobii Dynavox Tobii Pro Tobii Tech

• Revenue increased 13% over Q1 2015,

and by 12% adjusted for currency effects

• Synergies from Dynavox acquisition
• +4 MSEK one-time effect from Steve

Gleason Act

• Gross margin decreased to 71% (73%)
• Negatively impacted by 2 pp from

reallocation of some costs from sales and admin to COGS

• EBIT margin was 14% (16%)
• 5 MSEK one-time currency effect on

working capital

• +3 MSEK one-time effect from Steve

Gleason Act

• 20% increase in R&D spend

Q1 financials for Tobii Dynavox

7 71 93 135 143 167 173 182 219 188 67% 63% 70% 70% 73% 75% 70% 74% 71%

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2014 2015 2016 Revenue (SEK million) Gross margin

14 1 7 20 26 22 26 45 27 20% 1% 5% 14% 16% 13% 14% 20% 14%

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2014 2015 2016

EBIT (SEK million) EBIT margin

Tobii Dynavox Tobii Pro Tobii Tech

Tobii Pro

• World leader in eye tracking

solutions for understanding human behavior

• Market share close to 50%
• Provides eye tracker hardware

and analytics software, plus market research consulting

• 1,500 academic and 2,000

commercial customers

1/5 of Tobii Group’s sales

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9

Glasses 2 opens up more segments

Tobii Dynavox Tobii Pro Tobii Tech

Simulators Sports Industrial processes Etnographic studies

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Unilever on eye tracking

http://tobii.23video.com/eye-tracking-in-consumer-research-with-unilever

Tobii Dynavox Tobii Pro Tobii Tech

• For Tobii Pro, the 4th quarter tends to

show significantly higher sales than other quarters

• Revenue increased 9% over Q1 2015,

and by 8% adjusted for currency effects

• Strong sales of Glasses 2 and X3-120
• Strong sales of Insight research services
• Gross margin was 73% (75%)
• Negatively impacted by reallocation of

some costs from sales and admin to COGS

• EBIT margin was 10% (13%)
• 42% higher net R&D spend – both higher

absolute R&D as well as higher amortizations of capitalized R&D

Q1 financials for Tobii Pro

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Tobii Dynavox Tobii Pro Tobii Tech

40 35 31 61 54 46 44 65 59 69% 70% 72% 74% 75% 74% 72% 78% 73%

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2014 2015 2016

Revenue (SEK million) Gross margin

3

• 4

14 7 1 2 11 6 8% 0%

• 13%

22% 13% 2% 5% 17% 10%

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2014 2015 2016

EBIT (SEK million) EBIT margin

Tobii Tech

• Provides components and

platforms for eyetracking to integration customers

• Targets new volume markets

such as computer gaming, computers, virtual reality, automotive and medical devices

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~5% of Tobii Group’s sales

Tobii Tech, Q1 Highlights

Tobii IS4 ready for volume production and first products to integrate the platform announced by Tobii Dynavox MSI launched the world’s first gaming notebook with eyetracking – MSI GT72 Tobii

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Ubisoft launched two blockbuster PC games with support for Tobii eye tracking – Tom Clancy’s The Division and Assassin’s Creed Syndicate For a list of games supporting Tobii eye trackers, go to www.tobii.com/xperience/apps/

Tobii Dynavox Tobii Pro Tobii Tech

• Revenue is still very modest, and a

majority comes from sales of eye tracker platforms to Tobii Dynavox and Tobii Pro

• Revenue decreased by 9% from Q1

2015, and by 10% adjusted for currency effects

• Gross margin was 41% (42%)
• EBIT loss amounted to -49 MSEK

(-41)

• Increased net R&D spend due to

lower capitalization of R&D

• Increased investments in marketing

and business development

Q1 financials for Tobii Tech

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Tobii Dynavox Tobii Pro Tobii Tech

9 8 9 11 18 13 13 15 16 46% 72% 29% 37% 42% 45% 48% 49% 41%

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2014 2015 2016

Revenue (SEK million) Gross margin

• 21
• 32
• 24
• 44
• 41
• 39
• 37
• 59
• 49

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2014 2015 2016

EBIT (SEK million)

15

Tobii Group, Q1 2016

• Revenue increased 10% over

2015, and by 9% adjusted for currency effects

• Organic revenue growth in Tobii

Dynavox and Tobii Pro

• Decline in Tobii Tech, due to

reduction of paid development cost in Q1 2016

• Gross margin 73% compared to

74% last year.

• Negatively impacted from

reallocation of some costs from sales and admin to COGS

167 54 18 229 188 59 16 252

40 80 120 160 200 240 280 Tobii Dynavox Tobii Pro Tobii Tech Group Revenue (SEK million) Q1 2015 Q1 2016

115 131 168 207 229 222 228 287 252 70% 68% 71% 72% 74% 76% 72% 76% 73%

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2014 2015 2016

Revenue and Gross Margin Revenue (SEK million) Gross margin

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Tobii Group, Q1 2016

• Group EBIT -17 MSEK (-8)
• EBIT in Tobii Dynavox and Tobii

Pro in line with last year.

• EBIT 8 MSEK lower than last

year

• Increased net R&D spend due

to lower capitalization of R&D

• Increased investments in

marketing and business development

• 31
• 21
• 13
• 8
• 17
• 8
• 3
• 17

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2014 2015 2016

EBIT (SEK million)

• 4

26 7

• 41
• 8

27 6

• 49
• 17
• 60
• 20

20 Tobii Dynavox Tobii Pro Tobii Tech Group

EBIT (SEK million)

Q1 2015 Q1 2016

Balance Sheet & Cash Flow

• Total Assets impacted by the IPO,

where the company received 434 MSEK net cash

• Strong balance sheet with high

Equity ratio of 77%

• Strong cash position +371 in Cash

– no loans

• Current unutilized bank facilities 170

MSEK

• Cash flow improved due to positive

development in Trade Working Capital

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Tobii Group (MSEK) Q1 2016 Q1 2015 Total Assets 1 007 770 Equity 774 382 Equity Ratio 77% 50% Net Cash (+)/Net Debt(-) +371

• 63

Cash flow after continuous investments +2

• 39
• 39

7

• 16

7 3

Q1 Q2 Q3 Q4 Q1 2015 2016

Cash flow after Investments

7