Tobii Pre-tax profit (m) (151) (141) (33) 111 230 Year end ...

research.sebgroup.com/corporate Important. All disclosure information can be found on pages 11 – 13 of this document

Corporate Research Tobii NOT TO BE DISTRIBUTED IN, OR TAKEN OR TRANSMITTED INTO, THE UNITED STATES, CANADA, JAPAN, AUSTRALIA OR IN ANY OTHER JURISDICTION WHERE TO DO SO WOULD BE UNLAWFUL.

Results Analysis IT/Technology Sweden 30 April 2021

A great, shareholder-friendly move We think Tobii is right to initiate a strategic review with the aim of spinning out and listing Tobii Dynavox while integrating Tobii Pro and Tobii Tech under one brand (“Tobii”). As Dynavox multiples are expected to be medtech-like and with Tobii Tech being early into its S-curve (thus trading at sales multiples), we think this will be value creative for shareholders and strengthen the balance sheet.

Tobii Dynavox – steady grower scaler By placing Tobii Dynavox (we derive a fair price range of SEK 3.5-4.8bn in a stand-alone entity), the financial markets can become more educated in the company’s best-in-class assistive technology for the speech disabled where market penetration remains below 2%. And with its 68% gross margins, we think growth runway and subsequent scalability is high for Dynavox. We estimate 6.5% top-line CAGR 2020-25 with an EBIT of SEK 171m in 2022.

Tobii – ongoing XR roll-out gives appealing risk/reward With Tobii Pro and Tech left (we derive a fair value range of SEK 3.6-4.9bn) and more closely integrated, we think investors get both stability (Pro’s commercial research areas) and great potential upside (Tech’s XR use cases initially and then adjacencies). In addition, if the debt is placed in Dynavox, balance sheet constraints could be removed for Tobii. We estimate 21% top-line CAGR 2020-25 with an EBIT of SEK -26m in 2022.

A SOTP valuation approach is now more feasible In order to better reflect the two future entities, we have altered our valuation approach, now using a sum-of-the-parts. This yields a new fair value per share of SEK 72-98 with a mid-point value of SEK 85. To do this exercise, we have used 2022 multiples. The intended spin off is planned for Q4/21.

Key Data (2021E)

Price (SEK)ReutersBloomberg

Market cap (SEKm)Market cap (USDm)Market cap (EURm)Net debt (SEKm)Net gearingNet debt/EBITDA (x) 1.0

Shares fully dil. (m)Avg daily turnover (m)Free float 100%

677242

46%

99.40.0

TOBII.STTOBII:SS

6,847821

68.90

Share Price (12M)

Absolute (green) / Relative to Sweden (purple).

20

30

40

50

60

70

80

May Jul Aug Oct Dec Mar

Financials (SEK)

Source for all data on this page: SEB (estimates) and Millistream/Thomson Reuters (prices)

Year end: Dec 2019 2020 2021E 2022E 2023ERevenues (m) 1,501 1,426 1,505 1,868 2,095Adj. EBIT (123) (103) (5) 150 269Pre-tax profit (m) (151) (141) (33) 111 230EPS (1.65) (1.09) (0.33) 1.12 2.15Adj. EPS (1.48) (1.19) (0.33) 1.12 2.15DPS 0.00 0.00 0.00 0.00 0.00

Revenue growth (%) 17.5 (5.0) 5.5 24.1 12.2Adj. EBIT growth (%) n.m. n.m. n.m. n.m. 79.7Adj. EPS growth (%) n.m. n.m. n.m. n.m. 92.9

Adj. EBIT margin (%) (8.2) (7.2) (0.3) 8.0 12.8ROE (%) (21.2) (17.6) (6.1) 19.1 28.8ROCE (%) (12.5) (9.5) (0.4) 13.2 20.7

PER (x) n.m. n.m. n.m. 61.8 32.0Free cash flow yield (%) (7.2) 0.6 (1.5) 1.9 3.3Dividend yield (%) 0.0 0.0 0.0 0.0 0.0P/BV (x) 5.41 10.08 13.02 10.75 8.05

EV/Sales (x) 2.57 4.03 4.71 3.73 3.22EV/Adj. EBITDA (x) 59.5 45.7 30.5 17.6 12.9EV/Adj. EBIT (x) (31.5) (55.7) (1,448.2) 46.6 25.1Operating cash flow/EV (%) (0.3) 4.2 1.7 5.1 6.9Net debt/Adj. EBITDA (x) 4.26 1.13 1.04 0.29 (0.21)

Estimate Revisions (%)

2021E 2022E 2023ERevenues (2) (2) (2)Adj. EBIT 62 (4) (0)Adj. EPS 37 (5) (0)

Marketing communication commissioned by: Tobii

Results Analysis Marketing communication commissioned by: Tobii 30 April 2021 2

Corporate Research NOT TO BE DISTRIBUTED IN, OR TAKEN OR TRANSMITTED INTO, THE UNITED STATES, CANADA, JAPAN, AUSTRALIA OR IN ANY OTHER JURISDICTION WHERE TO DO SO WOULD BE UNLAWFUL.

Updated valuation approach In order to reflect a post spin off state with Dynavox on the one hand and Tech and Pro on the other, we have altered our valuation method from a group-based DCF to a sum-of-the-parts. We argue this is reasonable since investors will get two more pure-play alternatives on medtech and mass-market eye tracking, enabling a narrower approach with regards to comparing to peer multiples.

Two new sets of peer tables Dynavox – two groups of medtech peers In the case of Dynavox, we have constructed two peer groups, with one group consisting of global medtech companies and the other group being medtech peers with a more direct software offering. We envisage this is a good proxy for how investors will consider Tobii Dynavox once spun-out (which we argue is very likely to happen).

Dynavox peer comparison

Mkt cap EV/EBIT EV/Sales ND/ EBITDA

EBIT CAGR

EBIT margin (%) Gross mgn (%)

Ccy (lcl ccybn) 2021 2022 2023 2021 2022 2023 2021 20-23E 2021 2022 2021 2022 Global medtech peers Amplifon EUR 8.1 35 30 26 5 4 4 1.8 25% 13 14 80 80 GN Store Nord DKK 77.1 27 22 20 5 4 4 1.0 35% 18 19 57 58 MedCap SEK 3.6 26 21 17 4 3 3 0.1 29% 15 16 55 55 Sonova Holding CHF 17.3 26 24 23 6 5 5 0.1 12% 21 22 71 71 Demant DKK 74.6 27 24 22 5 4 4 1.9 42% 17 18 74 75 Getinge SEK 71.7 22 20 17 3 3 3 0.8 -3% 14 14 50 50 Draegerwerk EUR 1.3 7 7 6 1 0 0 1.0 -18% 8 7 47 45 Coloplast DKK 200.0 35 32 30 11 10 10 0.1 8% 32 32 68 68 Straumann Holding CHF 19.2 46 38 33 12 10 9 0.1 30% 25 26 74 75 Siemens Healthineers EUR 52.9 23 20 17 4 3 3 2.5 15% 17 17 41 41 Steris PLC USD 18.0 - - - - - - - - 23 23 44 45 Hill-Rom Holdings USD 7.7 17 15 13 3 3 3 2.0 6% 19 20 51 52 Elekta SEK 41.8 20 18 15 3 3 2 0.0 12% 14 15 42 42

Group average 25.9 22.5 19.8 5.0 4.5 4.1 1.0 16% 18 19 58 58 Group median 25.9 21.6 18.6 4.2 3.8 3.5 0.9 14% 17 18 55 55

Software medtech peers Raysearch Laboratories SEK 2.3 43 49 38 4 4 3 0.0 -402% 9 7 92 91 Sectra SEK 21.1 60 51 - 11 10 - -0.9 - 19 20 84 83 CompuGroup Medical EUR 4.1 30 26 23 4 4 4 1.9 10% 15 16 83 83 Instem GBP 0.1 23 16 13 3 2 2 -1.1 28% 13 15 - - Craneware GBP 0.7 48 47 43 13 12 11 -2.0 0% 26 25 93 97 Nexus AG EUR 0.9 35 28 22 5 4 4 -0.2 21% 14 15 95 95 Mentice SEK 2.1 580 55 22 11 7 5 -1.1 -269% 2 13 82 83 SyntheticMR SEK 2.0 75 42 28 25 18 13 -1.2 318% 33 41 39 48 ContextVision NOK 1.5 727 46 14 15 11 6 -3.8 84% 2 23 - -

Group average 180.0 40.1 25.6 10.1 8.0 6.1 -0.9 -26% 15 20 81 83 Group median 48.4 45.7 22.6 10.5 7.3 4.6 -1.1 16% 14 16 84 83

Joint group median 29.9 25.7 22.0 4.8 4.3 3.9 0.1 14% 16 17 69 70

Tobii Dynavox (SEBe) 20% 13 18 68 68 Source: SEB, Factset

Tech/Pro – Nordic high growth and mass market component peers For Tech and Pro (which will merge operations), we compare to Nordic high growth tech peers on the one hand and tech peers focusing on mass market components on the other.



Tobii Tech and Pro peer comparison

Mkt cap

EV/EBIT

EV/Sales

ND/ EBITDA

Sales CAGR

EBIT margin (%)

Ccy (lcl ccybn) 2021 2022 2023 2021 2022 2023 2021 20-23E 2021 2022 Nordic high growth tech peers Fortnox SEK 27.6 82 59 42 28.4 21.7 16.5 -1.0 32% 34 37 Enea SEK 5.4 24 18 15 5.7 4.8 4.1 0.2 11% 24 27 Lime Technologies SEK 4.6 47 36 30 11.7 9.6 8.1 1.2 19% 25 27 Evolution Gaming SEK 345.8 54 40 32 32.5 25.0 20.1 -0.8 43% 60 62 Invisio SEK 9.0 52 32 22 12.0 9.0 7.0 -0.3 32% 23 29 Simcorp DKK 32.8 33 29 27 8.9 8.1 7.4 -0.3 9% 27 28 Storytel SEK 14.9 - - 52 4.3 3.4 2.8 11.8 25% -7 -3 Admicom EUR 0.5 44 36 - 19.8 16.6 - -1.6 16% 45 46 Paradox SEK 21.2 32 25 22 10.7 8.4 7.5 -0.8 14% 34 34 Sinch SEK 93.2 80 42 35 6.6 4.9 4.2 3.3 42% 8 11 F-Secure EUR 0.6 27 22 18 2.6 2.4 2.2 -0.6 6% 10 11

Group average 47.6 33.9 29.3 13.0 10.4 8.0 1.0 22% 26 28 Group median 45.8 33.7 28.3 10.7 8.4 7.2 -0.3 19% 25 28

Tech massmarket component peers Egis Technology TWD 11.8 13 10 - 1.6 1.3 - -2.2 - 12 14 Fingerprint Cards SEK 10.7 1745 96 44 7.5 5.8 4.0 -3.0 28% 0 6 HMS Networks SEK 17.1 39 37 33 9.0 8.2 7.5 -0.1 14% 23 22 Paragon ID EUR 0.1 - - 41 1.2 1.1 0.9 7.4 2% -3 -1 Precise Biometrics SEK 0.5 - 81 36 4.5 4.1 3.5 -2.6 8% 0 5 Synaptics USD 5.0 16 13 11 3.9 3.5 3.0 0.4 4% 25 26

Group average 453.4 47.5 33.2 4.6 4.0 3.8 0.0 11% 10 12 Group median 27.5 37.3 36.0 4.2 3.8 3.5 -1.1 8% 6 10

Joint group median 41.8 35.8 31.7 7.5 5.8 4.2 -0.3 15% 23 26

Tobii Tech + Pro (SEBe) 23% -15% -2% Source: SEB, Factset

An overview of the valuation framework For Dynavox, we use a joint EV/EBIT median for the two groups, landing at a value of 26x for 2022. As Tobii Dynavox has gross margins in the middle of the two groups, we find this approach relevant to apply without any discount. This yields a fair value of SEK 35-49 per share (assuming Dynavox inherits 100% of group net debt).

Since growth is the primary focus for the coming years and profitability is not expected for the coming few years, we use a sales multiple based on a joint group median for the groups but apply a 20% discount to account for differences in profitability. Here, the multiple corresponds to 4.6x sales for 2022 (5.8x pre-discount). This yields a fair value of SEK 36-49 per share (assuming no net debt is inherited).

This valuation methodology gives us a fair value of the current Tobii Group at SEK 72-98 per share with a mid-point value of SEK 85. The upper and lower end of the range is a +-15% premium/discount to the used multiple.

Sum-of-the-parts overview

EV (2022 Multiple Low High Low High SEKbn SEKbn) Multiple used 2022 (-15%) (+15%) Dynavox 4.4 EV/EBIT 25.7 21.9 29.6 3.7 5.1 Pro + Tech 4.3 EV/Sales 4.6 3.9 5.3 3.6 4.9 Total 8.7 7.4 10.0

Joint implied EV 8.7 7.4 10.0 Net debt (end 2021) 0.2 0.2 0.2 Equity value 8.4 7.1 9.7 Number of shares 99.4 99.4 99.4

Price per share implied 85 72 98 Difference from current market cap 23% 4% 42% Source: SEB



Forecast revisions Forecast revisions

2021E 2022E 2023E (SEKm) Old New Change Old New Change Old New Change Net sales 1,536 1,505 -2% 1,907 1,868 -2% 2,131 2,095 -2% Cost of goods and services sold -479 -451 -6% -593 -560 -6% -667 -632 -5% Gross profit 1,057 1,054 0% 1,315 1,308 -1% 1,464 1,463 0% Total operational expenditure -1,070 -1,059 -1% -1,159 -1,159 0% -1,195 -1,195 0% Operating profit -13 -5 62% 155 150 -4% 269 269 0% Net financial items -35 -28 20% -35 -39 12% -35 -39 12% Profit before tax -48 -33 32% 121 111 -8% 234 230 -2% Tax 0 0 0 0 -16 -16 -2% Profit for the period from continued operations -48 -33 31% 121 111 -8% 218 214 -2% Net profit/loss from discontinued operations 0 3 0 0 0 0 Net profit loss/for the period -48 -30 37% 121 111 -8% 218 214 -2% Minority interests -1 0 95% -2 -1 -61% -2 -1 -56% Profit attributed to shareholders -46 -33 29% 123 112 -9% 220 215 -2% DPS 0.0 0.0 0.0 0.0 0.0 0.0 EPS (to shareholders, post-dilution) -0.5 -0.3 35% 1.3 1.1 -9% 2.2 2.2 -2% Sales per division Tobii Dynavox 876 850 -3% 1,025 1,005 -2% 1,076 1,068 -1% Tobii Pro 429 436 2% 541 543 0% 592 593 0% Tobii Tech 293 277 -6% 404 379 -6% 526 493 -6% …of which internal revenues 66 61 -6% 77 73 -6% 82 78 -5% …of which external revenues 227 215 -5% 327 306 -6% 444 415 -6% Intra-group revenues -62 -57 -8% -63 -59 -7% -63 -59 -6% Group 1,536 1,505 -2% 1,907 1,868 -2% 2,131 2,095 -2% Gross profit per division Tobii Dynavox 588 576 -2% 694 686 -1% 730 729 0% Tobii Pro 315 324 3% 402 407 1% 441 447 1% Tobii Tech 154 154 0% 218 215 -2% 292 287 -2% Group 1,057 1,053 0% 1,315 1,308 -1% 1,464 1,463 0% Adjusted EBIT per division Tobii Dynavox 110 105 -4% 171 171 0% 194 202 4% Tobii Pro 36 47 31% 101 108 7% 132 138 5% Tobii Tech -163 -161 -1% -120 -133 11% -60 -75 25% Group eliminations 4 4 7% 4 4 5% 4 4 5% Group -13 -5 -65% 155 150 -4% 269 269 0% Organic revenue growth Tobii Dynavox 5.1% 3.5% -1.6pp 16.2% 18.4% 2.2pp 5.0% 6.3% 1.3pp Tobii Pro 23.9% 27.4% 3.5pp 25.4% 24.6% -0.7pp 9.4% 9.3% 0.0pp Tobii Tech 34.9% 30.1% -4.8pp 37.1% 36.9% -0.1pp 30.0% 30.0% 0.0pp Group 15.0% 14.5% -0.6pp 23.3% 24.2% 0.8pp 11.7% 12.2% 0.5pp Gross margin per division Tobii Dynavox 67.1% 67.7% 0.6pp 67.8% 68.2% 0.5pp 67.8% 68.3% 0.4pp Tobii Pro 73.5% 74.4% 0.9pp 74.2% 75.0% 0.8pp 74.5% 75.3% 0.8pp Tobii Tech 52.5% 55.5% 3.0pp 54.0% 56.8% 2.7pp 55.6% 58.3% 2.7pp Group 68.8% 70.0% 1.2pp 68.9% 70.0% 1.1pp 68.7% 69.8% 1.2pp Adjusted EBIT margin per division Tobii Dynavox 12.6% 12.4% -0.2pp 16.7% 17.1% 0.4pp 18.0% 18.9% 0.9pp Tobii Pro 8.4% 10.9% 2.4pp 18.6% 19.8% 1.2pp 22.3% 23.3% 1.0pp Tobii Tech -55.6% -58.1% -2.6pp -29.7% -35.2% -5.5pp -11.5% -15.3% -3.8pp Group -0.8% -0.3% 0.5pp 8.1% 8.0% -0.1pp 12.6% 12.8% 0.2pp Source: SEB, Tobii



Financial statements Financial statements

(SEKm) Q1/20 Q2/20 Q3/20 Q4/20 Q1/21 Q2/21E Q3/21E Q4/21E 2021E 2022E 2023E 2024E 2025E Net sales 380 333 318 397 339 315 346 505 1,505 1,868 2,095 2,365 2,688 Cost of goods and services sold -116 -117 -99 -119 -97 -99 -104 -151 -451 -560 -632 -719 -820 Gross profit 263 216 219 277 241 216 243 354 1,054 1,308 1,463 1,646 1,868 Total operational expenditure -286 -261 -245 -285 -251 -259 -257 -292 -1,059 -1,159 -1,195 -1,229 -1,261 Operating profit -23 -46 -27 -8 -9 -44 -14 62 -5 150 269 417 607 Net financial items 7 -25 -17 -25 4 -10 -10 -12 -28 -39 -39 -39 -39 Profit before tax -16 -71 -44 -33 -5 -54 -24 50 -33 111 230 379 568 Tax -1 0 -4 43 0 0 0 0 0 0 -16 -27 -40 Profit for the period from cont. operations -16 -71 -48 10 -5 -54 -24 50 -33 111 214 352 529 Net profit/loss from discontinued operations 0 -3 -1 -6 3 0 0 0 3 0 0 0 0 Net profit loss/for the period -16 -74 -49 4 -2 -54 -24 50 -30 111 214 352 529 Minority interests 1 1 1 -3 1 0 0 -1 0 -1 -1 -1 -1 Profit attributed to shareholders -17 -74 -50 7 -3 -54 -24 51 -33 112 215 353 529 DPS 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 EPS (to shareholders, post-dilution) -0.2 -0.8 -0.5 0.1 0.0 -0.5 -0.2 0.5 -0.3 1.1 2.2 3.6 5.4 Sales per division Tobii Dynavox 241 217 204 233 203 182 193 272 850 1,005 1,068 1,143 1,223 Tobii Pro 96 63 82 124 98 72 103 163 436 543 593 641 692 Tobii Tech 59 67 44 60 50 76 66 85 277 379 493 640 832 …of which internal revenues 17 14 12 20 12 13 13 24 61 73 78 83 89 …of which external revenues 42 53 32 40 38 63 53 61 215 306 415 558 744 Intra-group revenues -17 -14 -12 -20 -12 -15 -15 -15 -57 -59 -59 -59 -59 Group 380 332 318 397 339 315 346 505 1,505 1,868 2,095 2,365 2,688

Gross profit per division Tobii Dynavox 163 136 136 156 138 122 131 185 576 686 729 780 835 Tobii Pro 70 44 62 90 73 53 76 121 324 407 447 482 521 Tobii Tech 31 35 20 31 30 41 36 47 154 215 287 384 512 Group 263 216 218 277 241 216 243 354 1,053 1,308 1,463 1,646 1,868 Adjusted EBIT per division Tobii Dynavox 36 28 27 34 27 9 20 49 105 171 202 239 282 Tobii Pro 1 -24 1 12 2 -13 11 47 47 108 138 165 198 Tobii Tech -61 -50 -57 -55 -40 -41 -46 -35 -161 -133 -75 9 123 Group eliminations 1 0 2 1 1 1 1 1 4 4 4 4 4 Group -23 -45 -27 -8 -9 -44 -14 62 -5 150 269 417 607 Organic revenue growth Tobii Dynavox 8.0% -4.0% 2.0% 2.0% -6.0% -5.0% 5.0% 20.0% 3.5% 18.4% 6.3% 7.0% 7.0% Tobii Pro -20.0% -33.0% -14.0% 2.0% 12.7% 25.0% 35.0% 35.0% 27.4% 24.6% 9.3% 8.0% 8.0% Tobii Tech 14.0% 31.0% -1.0% -8.0% -1.4% 25.0% 60.0% 45.0% 30.1% 36.9% 30.0% 30.0% 30.0% Group 0.4% -6.0% -3.2% 1.2% 0.4% 6.3% 19.8% 30.6% 14.5% 24.2% 12.2% 12.9% 13.7%

Gross margin per division Tobii Dynavox 67.5% 62.9% 67.0% 67.0% 68.0% 66.9% 67.9% 68.0% 67.7% 68.2% 68.3% 68.3% 68.3% Tobii Pro 72.4% 69.9% 75.0% 73.0% 75.0% 73.7% 74.2% 74.5% 74.4% 75.0% 75.3% 75.3% 75.3% Tobii Tech 52.5% 52.8% 46.0% 52.0% 59.0% 54.0% 54.2% 55.8% 55.5% 56.8% 58.3% 59.9% 61.5% Group 69.4% 64.9% 68.8% 69.9% 71.3% 68.5% 70.1% 70.1% 70.0% 70.0% 69.8% 69.6% 69.5%

Adjusted EBIT margin per division Tobii Dynavox 15.1% 13.0% 13.0% 14.8% 13.5% 5.0% 10.4% 17.8% 12.4% 17.1% 18.9% 20.9% 23.1% Tobii Pro 1.2% -38.5% 1.7% 9.4% 2.4% -17.8% 10.5% 28.9% 10.9% 19.8% 23.3% 25.8% 28.6% Tobii Tech -103% -74.3% -129% -91.2% -79.2% -53.9% -69.6% -40.7% -58.1% -35.2% -15.3% 1.4% 14.8% Group -6.0% -13.7% -8.5% -2.0% -2.7% -13.9% -4.0% 12.3% -0.3% 8.0% 12.8% 17.6% 22.6% Source: SEB, Tobii



Overview Investment case

Dynavox should continue to expand revenues and profits ahead due to greater market penetration and new products. For Tobii Pro, the recently launched flagship product Glasses 3 can drive sales for the coming years along with a further penetration to more universities and enterprises. While Tech have several enterprise-grade eye tracking headsets on the market today, the company is expecting the first eye tracking consumer headset to be launched in 2022.

Company profile

The Tobii Group is an eye tracking company and consists of three divisions: Tobii Dynavox, Tobii Pro, and Tobii Tech. Tobii Dynavox is Tobii's largest business unit, offering assistive technology & assistive communication (AAC) devices to help individuals with special needs and reduced ability to communicate. Tobii Pro is the second largest business unit and sells its eye tracking software and hardware products to commercial enterprises and research institutions to give insight into human behaviour, attention, and cognitive processes. Tobii Tech is the business unit which focuses on bringing eye tracking to the mass market by developing hardware and software to be integrated into devices such as laptops, gaming computers, and VR headsets.

Valuation approach

We value Tobii using a sum-of-the-parts approach.

Target price risks Key risks are that Tobii Tech does not develop the way we expect and price pressure

risk due to interest in eye tracking products from large players such as Apple, Google, and Facebook. The price pressure risk is significant in all segments due to increased competition. Missing the financial target of group profitability in 2021 could also be a negative trigger.



PER - 12 month forward P/BV - 12 month forward

Source: SEB Source: SEB

EV/Sales - 12 month forward EV/EBITA - 12 month forward


Net sales & EBITDA margin EBIT & Operating margin


Comparison with sector index - 1 year Comparison with Tobii - 1 year

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Tobii Rel Tobii



Profit & loss statement - Tobii(SEKm) 2014 2015 2016 2017 2018 2019 2020 2021E 2022E 2023ENet Sales 621 967 1,053 1,079 1,278 1,501 1,426 1,505 1,868 2,095Other revenues 0 0 0 0 0 0 0 0 0 0Total revenues 621 967 1,053 1,079 1,278 1,501 1,426 1,505 1,868 2,095

Total expenses (615) (886) (1,003) (1,131) (1,306) (1,470) (1,310) (1,270) (1,473) (1,574)Profit before depreciation 6 81 50 (52) (28) 31 116 235 395 521

Depreciation - Fixed assets (16) (28) (23) (20) (21) (47) (55) (57) (58) (60)Depreciation - Other assets (59) (88) (94) (119) (128) (124) (164) (183) (187) (192)Amortisation - Goodwill 0 0 0 0 (12) 0 0 0 0 0Amortisation - Other intangibles 0 0 0 0 0 0 0 0 0 0Operating profit (69) (36) (67) (191) (189) (140) (103) (5) 150 269

Associated companies (7) 0 0 0 0 0 0 0 0 0Net interest expenses 22 8 19 (34) 25 (12) (47) (28) (39) (39)Foreign exchange items 0 0 0 0 0 0 0 0 0 0Other financial items 0 0 0 0 0 0 0 0 0 0Value changes - Fixed assets 0 0 0 0 0 0 0 0 0 0Value changes - Financial assets 0 0 0 0 0 0 9 0 0 0Value changes - Other assets 0 0 0 0 0 0 0 0 0 0Reported pre-tax profit (54) (27) (48) (225) (164) (151) (141) (33) 111 230

Minority interests 0 0 0 0 0 0 0 0 0 0Total taxes 3 3 (2) 33 (8) (9) 33 (0) 0 (16)Reported profit after tax (51) (25) (50) (192) (172) (160) (108) (33) 111 214

Discontinued operations 0 0 0 0 (2) (12) (10) 3 0 0Extraordinary items 0 0 0 0 0 0 0 0 0 0Net Profit (51) (25) (50) (192) (174) (172) (118) (30) 111 214

Adjustments:Discontinued operations 0 0 0 0 2 12 10 (3) 0 0Interest on convertible debt 0 0 0 0 0 0 0 0 0 0Minority interests (IFRS) 0 0 0 0 0 0 0 0 0 0Value changes 0 0 0 0 0 0 (9) 0 0 0Goodwill/intangibles amortisations 0 0 0 0 12 0 0 0 0 0Restructuring charges 0 0 0 0 0 0 0 0 0 0Other adjustments 0 0 0 0 20 17 0 0 0 0Tax effect of adjustments 0 0 0 0 (1) (1) 0 0 0 0Adjusted profit after tax (54) (28) (51) (173) (160) (144) (117) (33) 111 214

Margins, tax & returnsOperating margin (11.1) (3.7) (6.4) (17.7) (14.8) (9.3) (7.2) (0.3) 8.0 12.8Pre-tax margin (8.7) (2.8) (4.5) (20.9) (12.8) (10.1) (9.9) (2.2) 5.9 11.0Tax rate 5.6 9.9 (4.6) 14.7 (5.0) (5.9) 23.3 (0.9) 0.0 7.0ROE (26.2) (4.2) (5.0) (16.9) (18.2) (21.2) (17.6) (6.1) 19.1 28.8ROCE (11.9) (2.2) (2.5) (14.4) (13.4) (12.5) (9.5) (0.4) 13.2 20.7

Growth rates y-o-y (%)Total revenues n.a. 55.8 8.9 2.4 18.4 17.5 (5.0) 5.5 24.1 12.2Operating profit n.m. n.m. n.m. n.m. n.m. n.m. n.m. n.m. n.m. 79.7Pre-tax profit n.m. n.m. n.m. n.m. n.m. n.m. n.m. n.m. n.m. 107.4EPS (adjusted) 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 92.9

Cash flow(SEKm) 2014 2015 2016 2017 2018 2019 2020 2021E 2022E 2023ENet profit (51) (25) (50) (192) (174) (172) (118) (30) 111 214Non-cash adjustments 78 106 107 149 153 189 170 240 245 252Cash flow before work cap 27 82 57 (43) (21) 16 52 210 356 466

Ch. in working capital / Other (101) (6) 11 27 8 (30) 191 (88) (1) (3)Operating cash flow (74) 76 68 (16) (13) (13) 242 122 355 463

Capital expenditures 0 (123) (141) (186) (225) (249) (208) (221) (228) (237)Asset disposals 0 2 (2) (0) 0 0 0 0 0 0L/T financial investments 0 0 0 0 0 0 0 0 0 0Acquisitions / adjustments 0 0 0 0 (159) (2) 159 0 0 0Free cash flow (74) (45) (75) (202) (396) (264) 193 (99) 127 226

Net loan proceeds 0 (142) 0 0 48 293 200 0 0 0Dividend paid 0 0 0 0 0 0 0 0 0 0Share issue 0 432 472 0 0 0 0 0 0 0Other 0 0 0 (8) (0) (18) 0 0 0 0Net change in cash (74) 246 396 (211) (349) 11 393 (99) 127 226

AdjustmentsC/flow bef chng in work cap 27 82 57 (43) (21) 16 52 210 356 466Adjustments 0 0 0 0 0 0 0 0 0 0Int on conv debt net of tax 0 0 0 0 0 0 0 0 0 0Cash earnings 27 82 57 (43) (21) 16 52 210 356 466

Per share informationCash earnings 0.0 1.04 0.61 (0.44) (0.21) 0.17 0.52 2.11 3.58 4.69Operating cash flow 0.0 0.97 0.74 (0.17) (0.13) (0.14) 2.45 1.23 3.57 4.66Free cash flow 0.0 (0.57) (0.82) (2.08) (4.07) (2.71) 1.95 (1.0) 1.27 2.27

Investment coverCapex/sales (%) 0.0 3.1 1.8 2.5 1.8 2.9 3.0 2.8 2.3 2.0Capex/depreciation (%) 0 107 85 136 113 91 78 75 74 71

Source for all data on this page: SEB



Balance sheet - Tobii(SEKm) 2014 2015 2016 2017 2018 2019 2020 2021E 2022E 2023ECash and liquid assets 119 371 772 537 192 185 410 310 437 663Debtors 148 169 152 146 207 310 297 313 363 408Inventories 51 46 67 59 87 97 88 89 107 121Other 31 30 39 41 59 194 0 0 0 0Current assets 350 615 1,030 783 544 787 794 712 908 1,191

Interest bearing fixed assets 50 55 55 90 89 0 0 0 0 0Other financial assets 4 2 4 4 0 86 122 122 122 122Capitalized development cost 219 223 255 293 346 351 352 348 347 349Goodwill 0 0 0 30 107 80 26 26 26 26Other intangibles 100 108 115 113 207 180 227 227 227 227Fixed tangible assets 31 32 28 31 32 49 46 32 17 (1)Other fixed assets 0 0 0 0 0 97 88 88 88 88Fixed assets 403 420 457 560 780 843 861 842 825 810

Total assets 753 1,035 1,487 1,343 1,325 1,630 1,655 1,554 1,733 2,001

Creditors 54 44 59 62 102 99 100 99 115 129Other trade financing 0 0 0 0 251 349 350 280 333 373S/T interest bearing debt 140 154 160 161 0 0 26 26 26 26Other 76 24 23 28 29 29 0 0 0 0Current liabilities 269 222 241 251 382 477 476 405 473 528

L/T interest bearing debt 77 0 0 0 67 294 527 527 527 527Other long-term liabilities 14 18 22 31 29 155 97 97 97 97Convertible debt 0 0 0 0 0 0 0 0 0 0Pension provisions 0 0 0 0 0 0 0 0 0 0Other provisions 4 2 8 2 5 22 0 0 0 0Deferred tax 1 1 0 0 7 7 0 0 0 0Long term liabilities 95 20 30 33 107 477 623 623 623 623

Minority interests 0 0 0 0 0 0 0 0 0 0

Shareholders' equity 389 794 1,215 1,058 835 676 556 526 637 851

Total liabilities and equity 753 1,035 1,487 1,343 1,325 1,630 1,655 1,554 1,733 2,002

Net debt (m) 48 (272) (667) (466) (221) 204 143 242 115 (111)Working capital (m) 101 177 177 156 (30) 125 (66) 22 23 26Capital employed (m) 606 947 1,375 1,219 896 1,065 1,108 1,078 1,189 1,403Net debt/equity (%) 12 (34) (55) (44) (26) 30 26 46 18 (13)Net debt/EBITDA (x) (47.8) (3.4) (13.3) 8.9 26.6 4.3 1.1 1.0 0.3 (0.2)Equity/total assets (%) 52 77 82 79 63 41 34 34 37 42Interest cover (1.7) (1.7) (1.5) (4.9) (81.1) (11.6) (2.2) (0.2) 3.9 6.9

Valuation(SEK) 2014 2015 2016 2017 2018 2019 2020 2021E 2022E 2023E

No of shares, fully dil. (y/e) 68.9 87.6 97.0 97.3 97.3 97.3 99.1 99.4 99.4 99.4No of shares, fully dil. avg. 0.0 78.3 92.3 97.2 97.3 97.3 99.1 99.4 99.4 99.4

Share price, y/e 65.7 68.3 35.4 27.1 37.6 56.6 68.9 68.9 68.9Share price, high 85.0 82.5 72.0 48.8 46.4 69.9 72.7Share price, low 31.7 40.6 33.3 25.5 26.6 22.8 53.3Share price, avg 49.4 61.5 47.7 37.3 36.6 41.6 62.6

EPS (reported) 0.00 (0.32) (0.54) (1.98) (1.77) (1.65) (1.09) (0.33) 1.12 2.15EPS (adjusted) 0.00 (0.36) (0.55) (1.78) (1.64) (1.48) (1.19) (0.33) 1.12 2.15Cash earnings/share 0.00 1.04 0.61 (0.44) (0.21) 0.17 0.52 2.11 3.58 4.69Dividend/share 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

Enterprise value/share 63 61 31 25 40 58 71 70 68Book value/share 5.6 9.1 12.5 10.9 8.6 6.9 5.6 5.3 6.4 8.6Adjusted equity/share 5.6 9.1 12.5 10.9 8.6 6.9 5.6 5.3 6.4 8.6

PER (adjusted) n.m. n.m. n.m. n.m. n.m. n.m. n.m. 61.8 32.0CEM 63.0 111.3 (79.8) (126.1) 222.8 108.5 32.6 19.2 14.7Dividend yield 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0

EV/EBITDA 67.7 118.8 (57.0) (290.9) 80.6 45.7 30.5 17.6 12.9EV/EBITA (153.1) (88.6) (15.6) (15.4) (31.5) (61.7) (933.3) 46.6 25.1EV/EBIT (153.1) (88.6) (15.6) (14.3) (31.5) (55.7) (1,448.2) 46.6 25.1EV/Sales (x) 5.67 5.65 2.76 1.89 2.57 4.03 4.71 3.73 3.22Price/Book value 7.25 5.45 3.25 3.16 5.41 10.08 13.02 10.75 8.05Price/adjusted equity 7.25 5.45 3.25 3.16 5.41 10.08 13.02 10.75 8.05

Free cash flow/Market cap (%) (0.9) (1.2) (5.9) (9.0) (7.2) 0.6 (1.5) 1.9 3.3Operating cash flow/EV (%) 1.4 1.1 (0.5) (0.5) (0.3) 4.2 1.7 5.1 6.9EV/Capital employed (x) 5.8 4.3 2.4 2.7 3.6 5.2 6.6 5.9 4.8

Main shareholders Management Company informationName (%) Votes Capital Title Name ContactSwedbank Robur Fonder 8.8 8.8 COB Kent Sander Internet www.tobii.comHandelsbanken Fonder 8.3 8.3 CEO Henrik Eskilsson Phone number +46 8 663 69 90 Henrik Eskilsson 6.2 6.2 CFO Johan WilsbyForeign owners (total) 19.2 19.2 IR Ola Elmeland

Source for all data on this page: SEB



About this publication This report is a marketing communication commissioned by Tobii and prepared by Skandinaviska Enskilda Banken AB (publ). It does not constitute investment research; as such, it has not been prepared in accordance with the legal requirements to promote the independence of investment research, nor is it subject to any prohibition on dealing ahead of the dissemination of investment research.

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Tobii Pre-tax profit (m) (151) (141) (33) 111 230 Year end ...

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Transcript of Tobii Pre-tax profit (m) (151) (141) (33) 111 230 Year end ...