Investor presentation. September 2015

Transcription

1 Investor presentation September

2 Tobii the global leader in eye tracking Established in 2001 Headquartered in Sweden, with offices in the US, China, Japan, Germany, UK, South Korea and Norway 800 Sales per Region (Jan-Jun 2015) Rest of world 15% North America 62% SEK million 600 employees worldwide (of which 200 in R&D) Europe 23% MSEK LTM revenue 500 Listed on Nasdaq Stockholm since Apr Three strong, independent business units:

3 How eye tracking works 3

4 Eye tracking = your device understands you What object you are paying attention to What information you have processed Your mental state 4

5 Eye tracking provides benefits in many fields ASSISTIVE TECHNOLOGY RESEARCH MAINSTREAM COMPUTERS Provides the ability to communicate to millions of people without the ability to speak Transformative insights into behavior and consumer responses New user interfaces for mainstream computers and tablets with built in eye tracking GAMING AUTOMOTIVE SPECIALTY APPLICATIONS Raise game immersion and intensity to new levels for a large set of enthusiast gamers Monitor and warn drivers for drowsiness and inattention Areas including numerous new diagnostics methods, hands-free control, security and retail applications 5

6 Three strong, independent business units Global leader in assistive technology for communication Global leader in eye tracking solutions for research Bringing Tobii s leading eyetracking technology to potential new volume markets % of 2015 sales 1) : 73% 21% 7% 1) Tobii Tech revenue includes internal sales to Tobii Dynavox and Tobii Professional, eliminated in group number 6

7 Tobii Dynavox Tobii Dynavox Tobii Pro Tobii Tech World leader in assistive technology for communication, computer access and special education Our products enable tens of thousands of users to speak and interact effectively 3/4 of Tobii Group sales 7

8 Tobii Dynavox Tobii Pro Tobii Tech Tobii Dynavox help users with different needs and diagnoses ALS SPINAL CORD INJURY APHASIA CEREBRAL PALSY RETT SYNDROME AUTISM PARKINSON S MUSCULAR DYSTROPHY 8

9 Steve Gleason Communicating with ALS 9

10 Significant unmet need Tobii Dynavox Tobii Pro Tobii Tech 0.5-1% of the global population (50 million people) truly need assistive technology to communicate effectively 1) Effective reimbursement only in a few countries: USA German-speaking, Scandinavia, Canada, Australia, UK Rest of world Reimbursed under Medicare, Medicaid and many private insurers Reimbursed under public insurance and reasonable infrastructure Still none or very limited reimbursement Current penetration in top-10 countries with reimbursement for communication devices Penetrated - 10% Unpenetrated - 90% 1) Arthur D. Little; 10

11 Tobii Dynavox Tobii Pro Tobii Tech Acquisition of Dynavox created the global leader in assistive technology for communication Tobii Assistive Technology the leader in eye tracking based AAC + DynaVox Systems LLC the leader in touch based AAC Tobii Dynavox Global leader in assistive technology for communication + Doubled the business unit s revenue + Tripled the sales force in the US + Significantly improved the ability to manage insurance funding of devices in the US + Added leading products for touch based AAC + Added leading communication software + Added leading software for special education 11

12 Tobii Dynavox Tobii Pro Tobii Tech Superior product portfolio EYE TRACKING AAC SOLUTIONS TOUCH AAC SOLUTIONS COMPUTER ACCESS SOLUTIONS SPECIAL EDUCAITON SOFTWARE COMMUNICATION APPS Speech generating devices controlled via built in eye tracker Medical grade Communicator and Compass software Speech generating devices controlled by touch technology Medical grade Powerful speakers and rugged design Compass software Eye trackers connected via USB to any windows based computer or tablet Non-Medical grade Used by teachers to make and adapt school materials and education plans for special needs students 250,000 active users Enabling communication through the advantages and wide adoption of consumer tablets SALES SPLIT (2014) 1) 59% 7% 6% 1% 20% 1) Excludes ~7% Other AAC, which includes accessories and low-tech devices 12

13 Product news in Q2 T7 A new, smaller, touch-based speech generating device I-Series+ New improved version of the bestselling I-Series eye gaze devices Communicator 5 New major version of communication software 13

14 Clear market leader in assistive technology for communication Tobii Dynavox Tobii Pro Tobii Tech No.1 No.1 No.1 In eye tracking AAC In touch AAC In special education software 45% No.1 No.1 America Europe 1) Arthur D. Little; based on 2013 estimate. 2) Abilia s market share only includes estimated communication revenues from AAC and computer access 14

15 Tobii Dynavox Tobii Pro Tobii Tech Continuing to invest to drive long-term growth Key initiatives Realize synergies and cross-selling opportunities of the acquisition of DynaVox Systems Increase efforts to educate and train prescribers Increase public awareness of assistive technology for communication Develop products to even better serve the needs of different user types Expand to new segments and geographical markets Drive efficiency in sales and internal processes Work to improve reimbursement in both existing and new markets 15

16 Financial overview Tobii Dynavox Tobii Pro Tobii Tech Revenue Net sales and margins R&D investments SEK million SEK million and % of net sales SEK million % 70% 60% 50% 40% 58% 61% 68% % % 20% 10% 206 1,4% 234 9% 12% 12% % Q LTM Q LTM Revenue Gross margin EBIT margin R&D Net R&D Total 1) Including Dynavox from 1 January,

17 Financial target Tobii Dynavox Tobii Pro Tobii Tech Tobii Dynavox s long-term target is to deliver a top-line growth in excess of 10% with an EBIT margin of 20%. 19

18 Tobii Pro The undisputed market leader in solutions for eye tracking research Eye tracking provides valuable insights to commercial and academic customers Tobii sells solutions including eye tracking hardware, analytics software and services 1/5 of Tobii Group sales 20

19 Tobii Dynavox Tobii Pro Tobii Tech Tobii Pro serves researchers with insights in many different fields USABILITY TESTING PACKAGING DESIGN SPORTS RESERACH ADVERTIZING RESEARCH VISION RESEARCH SHOPPER RESEARCH PERFORMANCE ANALYSIS NEUROSCIENCE PSYCHOLOGY 21

20 Leading product portfolio Tobii Dynavox Tobii Pro Tobii Tech HARDWARE SOFTWARE SERVICES Desktop research eye trackers Scientific highspeed eye trackers Wearable eye trackers Software suite for research & analysis Cloud-based solutions Custom research services Consultation Training academy Sales split (2014) 1 55% 29% 12% 1) Other sales of 5% mainly includes accessories 22

21 Tobii Dynavox Tobii Pro Tobii Tech Tobii Glasses 2 Tobii Glasses 2 started shipping Dec 2014 Continued very strong reception from existing and new customers and segments Several product improvements launched in Q2 Hardware improvements Improvements to analysis software Development Kit 23

22 Truly understand behavior and consumer responses Measure real consumer behavior - truly objective: What catches her interest? What does she pay attention to longer? Has she processed that information? What drives her to the purchase decision? Market research is a 40 bn USD/year market Tobii Dynavox Tobii Pro Tobii Tech The trouble with market research is that people don t think how they feel, they don t say what they think and they don t do what they say. David Ogilvy 24

23 Strong customer base Tobii Dynavox Tobii Pro Tobii Tech Over 2,000 commercial customers including 18 of top 20 global advertisers and over 1,500 academic customers. including 49 of top 50 universities 1 Massachusetts Institute of Technology (MIT) 26 Duke University 2 University of Cambridge 27 University of California, Berkeley (UCB) 2 Imperial College London 28 The University of Hong Kong 4 Harvard University 29 University of Bristol 5 University of Oxford 30 The University of Manchester 5 UCL (University College London) 31 The University of Tokyo 7 Stanford University 31 Seoul National University 8 California Institute of Technology (Caltech) 33 The University of Melbourne 9 Princeton University 34 Northwestern University 10 Yale University 35 Ecole Polytechnique 11 University of Chicago 36 Kyoto University 12 ETH Zurich 37 UCLA and 4 of top 5 market research companies 13 University of Pennsylvania 37 The University of Sydney 14 Columbia University 39 Nanyang Technological University (NTU) 14 Johns Hopkins University 40 The Hong Kong Univ. of Science and Techn. 16 King's College London (KCL) 41 New York University (NYU) 17 University of Edinburgh 41 University of Wisconsin-Madison 17 EPFL (Ecole Polyt. Fédérale de Lausanne) 43 University of British Columbia 19 Cornell University 43 The University of Queensland 20 University of Toronto 45 University of Copenhagen 21 McGill University 46 The Chinese University of Hong Kong 22 National University of Singapore (NUS) 47 Tsinghua University 23 University of Michigan 48 The University of New South Wales 24 Ecole normale supérieure, Paris 49 Ruprecht-Karls-Universität Heidelberg 25 The Australian National University 50 University of Amsterdam Source: Nielsen Global AdView Pulse Q3 2012, ESOMAR 2014 report, QS World University Rankings 2014/2015 1) Number of eye tracking related research reports that reference Tobii on Google scholar 25

24 Clear market leader in eye tracking solutions for research Tobii Dynavox Tobii Pro Tobii Tech 47% 2) Arthur D. Little (2013 estimates) 26

25 Investing to drive long-term growth Key initiatives Tobii Dynavox Tobii Pro Tobii Tech Drive awareness of eye tracking and its value in research Grow Tobii Insight both as exciting business in itself, and to drive demand of solutions Develop products that increase efficiency in the research process Take eye tracking outside of the lab 5 6 Pursue adjacent segments Continue transition from hardware to more software and services in low-end 27

26 Tobii Dynavox Tobii Pro Tobii Tech Financial overview Revenue SEK million Net sales and margins SEK million and % of net sales R&D investments SEK million Q LTM 80% 70% 60% 50% 40% 30% 20% 10% 0% 73% 147 0,4% 68% 72% % 74% 192 8% 9% Q LTM Revenue Gross margin EBIT margin Q LTM R&D Net R&D Total 28

27 Financial target Tobii Dynavox Tobii Pro Tobii Tech Tobii Pro s long-term target is to deliver a top-line growth in excess of 15% with an EBIT margin in excess of 15%. In the mid term (next 2-3 years), our goal is to deliver a top-line growth of 10% with an EBIT margin of 10% 31

28 Tobii Tech Provides core eye-tracking technology to OEM volume customers Customers integrate the technology into their products Investment phase to evolve Tobii Technology s world-leading technology to suit the mass market and to grow eco-system of software applications 7% of Tobii Group sales 32

29 Tobii Tech targets volume opportunities in several fields Tobii Dynavox Tobii Pro Tobii Tech GAMING MAINSTREAM COMPUTERS VIRTUAL REALITY AUTOMOTIVE SPECIALTY APPLICATIONS 33

30 Tobii Dynavox Tobii Pro Tobii Tech Very large potential markets but significant time and investment required to reach meaningful penetration PCs & LAPTOPS 300M units 1 TABLETS 300M units 1 AUTOMOTIVE 90M units 1 PC GAMING 70M global performance PC gamers 2 1) Estimated annual volumes Source: Statista; 2) Source: Jon Peddie,

31 Products and business models Tobii Dynavox Tobii Pro Tobii Tech EYE TRACKING PLATFORMS FOR INTEGRATION WHITE-LABEL PRODUCTS COMPONENTS AND REFERENCE DESIGN 35

32 Tobii Dynavox Tobii Pro Tobii Tech Investments and time required to reach volume markets 1. Develop low-cost, low-power, small-size and highperformance eye tracking technology 2. Grow rich array of software content that provides new amazing user experiences 3. Gain success with early adopter consumers 4. Get design wins with leading device manufacturers Volume adoption in mainstream computers and tablets Integration in premium devices targeting early segments Peripherals Gaming notebooks Other premium PCs Premium monitors Low-volume peripherals for very early adopter consumers 36

33 Early, but important successes Tobii Dynavox Tobii Pro Tobii Tech May 2014; Tobii EyeX Development Kit several thousand software developers experimenting or developing applications Jan 2015; Tobii IS3 platform first eye tracker that tracks sufficient % of population and meets cost point for early adopter consumers Jan 2015; SteelSeries Sentry world s first eye tracker for gaming (although narrow niche in streaming) Early 2015; First PC games with support for Tobii eye tracking - Assassin s Creed Rogue, Primal, Son of Nor, TheHunter June 2015; Letter-of-intent with game computer manufacturer MSI 37

34 Significant technology advantage Tobii Dynavox Tobii Pro Tobii Tech TRACKING ROBUSTNESS ACCURACY Outstanding reliability to track a user s gaze direction regardless of varying physical attributes of the user s eye and ambient conditions Outstanding accuracy to enable "pointing" with the eyes at reasonably small objects. Even when user moves, and in ambient light COST USER EXPERIENCE Low production cost Low power consumption Small physical footprint EyeX Interaction Developer eco-system EyeX Engine 38

35 Tobii is 5x larger than the nearest competitor Tobii Dynavox Tobii Pro Tobii Tech Source: Arthur D. Little; based on 2013 estimate. 1) Prentke Romich Company (including PRC, PRD, Saltillo and Liberator) 39

36 Tobii Dynavox Tobii Pro Tobii Tech Tobii has the world s largest collection of patents related to eye tracking 1 ~190 granted and applied patents Portfolio covers many aspects of eye tracking, ranging from hardware and algorithms to many forms of eye gaze interaction 1) Independent study conducted by ClearView IP. European and US patents only. Patents specifically related to medical/ophthalmology products excluded. 40

37 Financial overview Tobii Dynavox Tobii Pro Tobii Tech Net sales and margin EBIT R&D investments SEK million and % of net sales SEK million SEK million % 45% 50 38% 40% 39% 35% 37 30% 25% 20% 20 20% 15% 10% 3 5% Q LTM Revenue Gross margin 50% 0% Q LTM EBIT Q LTM R&D Net R&D Total 1) Including Dynavox from 1 January,

38 Financial target Tobii Dynavox Tobii Pro Tobii Tech Tobii Tech s goal is to become cash flow positive during Until then, the business unit plans for SEK 400 million negative cash flow due to significant investments in core technology. 44

39 45 Tobii Group

40 Experienced management team with track record of growth Henrik Eskilsson CEO and co-founder Ownership: 7.9% 1,2 Background: Product manager / Business development at HotSip (now Oracle). Esben Olesen CFO Background: 8 years with PWC working with listed companies and IPOs. 20 year Finance Director, CFO, VP for Johnson Controls Inc., FLSmidth A/S and Realtime A/S John Elvesjö CTO, deputy CEO and cofounder Ownership: 5.9% 1 Background: CEO and cofounder of Jenser Technology Mårten Skogö CSO and co-founder Ownership: 5.7% 1 Background: CTO and cofounder of Jenser Technology Fredrik Ruben President Tobii Dynavox (2014) Background: CEO at Vitec Fastighetssystem, CEO at 3L System Group, Vice President of Business Development/COO at Boss Media, Director Global Sales & Marketing at Ericsson. Tom Englund President Tobii Pro (2009) Background: Business Line Manager at Atlas Copco Tools & Assembly Systems and Business Analyst at Accenture and Roland Berger Oscar Werner President Tobii Tech (2014) Background: President Tobii Assistive Technology, CEO of Getupdated Sweden and Vice President Business dev. of mblox Inc. 46

41 The world leader in eye tracking Proven technology with strong unique benefits in large markets Global technology and market leadership Profitable Clear no. 1 position Market with significant unmet needs support longterm growth opportunity Profitable Clear no. 1 position Long-term growth opportunity by driving use beyond early adopters Eye tracking technology leadership World s largest eye tracking IP portfolio Multiple large volume opportunities Will require time and investments 47