Fingerprint Cards Q1 2016 Report
Transcript of Fingerprint Cards Q1 2016 Report
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Fingerprint CardsQ1 2016 Report
April 28, 2016
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Strong Q1 2016 results
Revenues Margins & profitability Highlights
Revenues: MSEK 1,491 (MSEK 140), an increase of966% y-o-y and 10% q-o-q
Gross profit: MSEK 732 (MSEK 37)
Gross margin: 49% (27%)
EBIT: MSEK 589 (MSEK -19)
Operating margin: 40% (-13%)
EPS: SEK 7.12 (SEK -0.32), before dilution
26 mobile devices launchedwith FPC touch fingerprint sensors
Strengthened competitiveposition in smartphones
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Business update
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26 smartphones/devices by 12 OEMs– China continue to be very strong
– Huawei, Xiaomi, Lenovo, Oppo and Vivo launched 13 phones with our sensors during the quarter
– LG G5
– New phones by HTC and Sony
Market development – Q1 2016
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Continued market leadership
* Source: Strategy Analytics April 2016, FPC
27 devices launched by customers named above in 2016 to date
0%
5%
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Global Smartphone Vendor Market Share %, Q1 2016
Launched phones with competitior or inhouse Has not launched phone with fingerprint sensor Launched phone with FPC sensor in 2016
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Smartphone seasonality
Seasonal decline in Q1
* Source: Strategy Analytics, April 2016
0,0
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100,0
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Q4 '14 Q1 '15 (A) Q2 '15 Q3'15 Q4'15 Q1'16
M U
nit
sSmartphones Quarterly Volume shipments
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Revenue growth from more phones
Q3 2015 Q4 2015 Q1 2016 Q2 2016 Q3 2016 Q4 2016
3957
83XXX
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# of Devices launched (accumulated)
Schematic illustration
Revenue generated by launches in 2015
Revenue generated by launches in 2016
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Volume and revenue ramp up
Design WinProject start
First order/Samples
First Shipments
Phone Launch
Pre-sales/ Integration
Launch support High volume
Q4 2015 Q1 2016 Q2 2016 Q3 2016 Q4 2016 Q1 2017
Quarterly Revenue(schematic)
Schematic illustration
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Extending performance with launched sensors
• Anti-spoof and improved fully inhouse algorithm for industry’s best security and biometric performance
• Vertical integration combining sensor technology, packaging, algorithm, software, leads to highestperformance
Fingerprint sensors under glass or ceramics
• FPC1245 with ceramics highly successful, used in Xiaomi Mi5 and Oppo R9/R9+
• Launch of FPC1268 for mounting under cover glass- Phones being developed for launch H2 2016
New sensors under way for entry level segment
Extending our technology leadership
FPC1245
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• Strong market growth in fingerprint sensors
• Other segments start to contribute in 2016
• Other segments to add substantial value in 2017 and 2018
New segments to expand the market
Source: Strategy Analytics, IHS, FPC estimatesTotal addressable market excludes Apple, includes all other OEMs and segments including swipe technology
0
500
1000
1500
2000
2014 2015 2016 2017 2018
M Units Total addressable market
Smartphone Other
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Strategy for growth
Existing
New
Existing
Grow with the existing customer base
Add new customers
Extended biometry scope• Trackpad• Higher security• More features
New
New offerings• Other sensors• M&A opportunities
Segments
Offering
Other segments
• Automotive• Industrial and medical• Internet of things
Smart Cards
• Sensor adaptation• Utilize scale advantages• Strong growth potential
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Strategy for growth in progress
Existing
New
Existing
Grow with the existing customer base
Add new customers
Extended biometry scope• Trackpad• Higher security
- Anti-spoof and improved algorithm• More features
New
New offerings• Other sensors• M&A opportunities
Segments
Offering
Progress Q1 2016
• Automotive design win announced• Wearables platform announced with
Gemalto, ST, PB
Progress Q1 2016
• Continued cooperation with Zwipe• Progress with other partners• Plan for commercial launch in 2016
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• Continued market leadership– Very high share of phones launched
in Q1
– Very strong outlook for new phones to be launched by existing and new customers
• Continued technology leadership– New sensors & new features
• Increased investments for continued leadership in smartphones and new segments
Continued leadership
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Outlook
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2016 Guidance
Previous 2016 Guidance(1) Updated 2016 Guidance
Revenue 2016 SEK 7,000-8,500 million SEK 7,000-8,500 million
Operating margin 2016Improved operating margin
compared to H2 2015
Improved operating margin compared to H2
2015
Average SEK/USD rate 8.50 (applied to Q1-Q4) 8.30 (applied to Q2-Q4)
1. Guidance as of 5/2/2016.
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2016 Q1 Financial results
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Quarterly financial trends
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Investing for future growth
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Improved profitability
Q1 Q1 Apr-Mar Apr-Mar
2016 2015 2015/16 2014/15
Operating profit, SEK M 589,1 -18,8 1518,2 -137,5
Operating margin, % 40 -13 36 -39
EPS, SEK 7,12 -0,32 20,18 -2,37
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Working capital development
*Average working capital over 5 quarters/rolling 12 months sales
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Cash flow and Net cash trend
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Q&A