Company Presentation 2020 · 2020. 12. 2. · Director and shareholder of iBRAIN Consulting Group...

Company Presentation 2020

Disclaimer

2© VIA optronics AG I Version: 2020-12-02

This presentation, prepared by VIA optronics (“VIA” or the “Company”), is solely for informational purposes. The forwarding of such information to third parties is prohibited unless VIA

optronics has granted express permission to do so.

This presentation contains estimates and other information concerning VIA optronics’ industry that are based on third party reports. This information involves a number of assumptions

and limitations, and VIA optronics has not independently verified the accuracy or completeness of the information.

This presentation is not a prospectus and it shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of, the securities in any state or jurisdiction

in which such an offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of such state or jurisdiction. We have filed a registration

statement (File No. 333-248599), which includes a preliminary prospectus, with the Securities and Exchange Commission ("SEC") for the offering to which this presentation relates.

The registration statement has not yet become effective. Our securities may not be sold, nor may offers to buy be accepted, prior to the time the registration statement becomes

effective. Before you invest in any such securities, you should read the preliminary prospectus in that registration statement and other documents we have filed with the SEC for more

complete information about us and this offering. You may obtain these documents for free by visiting EDGAR on the SEC website at www.sec.gov. Alternatively, copies of the

preliminary prospectus may be obtained from Berenberg Capital Markets LLC, Attention: Equity Capital Markets, 1251 Avenue of the Americas, 53rd Floor, New York, NY 10020, by

telephone at (646) 949-9000, or by email at [email protected].

The information set forth herein does not purport to be complete or to contain all of the information you may desire. Statements contained herein are made as of the date of this

presentation unless stated otherwise, and neither this presentation, nor any sale of securities, shall under any circumstances create an implication that the information contained herein

is correct as of any time after such date or that information will be updated or revised to reflect information that subsequently becomes available or changes occurring after the date

hereof.

Certain statements contained in this document that are not historical facts may be considered forward-looking statements as defined in the U.S. Private Securities Litigation Reform Act

of 1995. Words such as “anticipate,” “believe,” “estimate,” “expect,” “forecast,” “intend,” “may,” “plan,” “project,” “predict,” “ambitioned,” “should” and “will” and similar expressions as

they relate to VIA optronics including its subsidiaries are intended to identify such forward-looking statements. Neither VIA optronics nor any advisor of VIA optronics undertakes any

obligation to publicly update or revise any forward-looking statements. All forward-looking statements are subject to various risks and uncertainties that may cause actual results to

differ materially from expectations. VIA optronics is providing this information as of the date of this presentation and does not undertake any obligation to update any forward-looking

statements contained in this presentation as a result of new information, future events or otherwise. Readers are advised not to rely unduly on these forward-looking statements, which

refer only to the relevant dates.

No warranty of any kind, implied, expressed or statutory, is given in conjunction with the information set forth herein. The Company makes no representations or warranties, express or

implied, as to the accuracy or completeness of any information, statements and estimates presented herein. Neither the SEC nor the Securities Regulatory Authority of any state,

foreign or other jurisdiction has passed upon the accuracy or adequacy of this presentation.

This presentation contains trademarks, tradenames and service marks of the Company and, solely for convenience, these trademarks, tradenames and service marks may appear

without the ® or TM symbols. This presentation may also include trademarks, tradenames and service marks that are property of other organizations.

Under no circumstances may a copy, in any format, be shown, reproduced, transmitted, or otherwise provided to any person other than the authorized recipients.

Experienced senior management team and

supervisory board

▪ More than 25 years of experience

in corporate finance; led many

cross-border and national M&A

and financing deals

▪ Supervisory board member of four

mid-sized companies including

chairman of CPU Softwarehouse

AG, a German stock listed IT

company

Dr. Heiko Frank

Chairman of the

Supervisory Board

3

Supervisory board:

Jerome S. Tan

Vice Chairman of the

Supervisory Board

▪ More than 20 years of experience

in finance, strategic planning and

acquisition / integration

▪ Global CFO of Integrated

Microelectronics, Inc.

▪ Previous experience includes

several business development

roles and CFO roles (GE Money

Bank, GE Capital, CNBC)

▪ Founded VIA optronics in 2005

▪ Former Head of Sales EMEA for White Electronics Design

Corporation

▪ Former Business Development Manager & Director of

Origin Germany B.V.’s Service Group

▪ Former Development Engineer, Project Manager, Group

Leader and Head of Electronic Service Center at Diehl

Stiftung & Co. KG

Juergen Eichner

CEO & Founder

▪ Joined VIA optronics in June 2015

▪ Former CFO of Elephant Seven AG and over 15 years of

M&A, IPO, and Mid Cap Private Equity experience

▪ Former Partner at IMAP M&A Consultants AG, Managing

Director and shareholder of iBRAIN Consulting Group

GmbH

Daniel Juergens

CFO

▪ Long-term experience in the

technology sector

▪ Founder and chairman of Blaize

and as Emeritus Chairman of

INPHI Inc.

▪ Previously served as Executive

Chairman of Wave Computing Inc.

and Managing Director of Tallwood

Venture Capital

Diosdado Banatao

Member of the

Supervisory Board

Anthony John Best

Member of the

Supervisory Board

▪ Longstanding experience in

business and finance as consultant

and fund director

▪ Alternate director of Surface

Technologies International Inc.

▪ Previously served as a trustee

director in manufacturing and

consultancy of HSSMI Ltd.

▪ CFO of Grid Dynamics

International, Inc.

▪ 11 years of Wall Street experience

including as Equity Research

Analyst with William Blair

▪ Expertise across Semiconductors,

Information Technology Services,

Technical Software, and Wireless

Sectors

Anil Kumar Doradla

Member of the

Supervisory Board

Management board:

Our opportunity: Displays are the gateway to the

digital world

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1100101001010100110101110010110001100101001010100110101110010110001100101001010001100101001010100110101110010

1100011001010010101001101011100101100011001010010100110010100101010011010111001011000110010100101010011010111

001011000110010100101000110010100101010011010111001011000110010100101010011010111001011000110010100101 0010 10

Wellness

Education

Logistics

Commerce

Commute

Catering

Health

Logistics

Hygiene

Social Interaction

Outdoors

Tourism

Sports

Music

Food Delivery

4

Curved form factor

Thinner displays

Multiple displays under

one cover lens

Bezel free

Touch sensitivity

Optical clarity

Power consumption

Sunlight readability

Vibration and shock

Extreme temperatures

Condensation and dust

Design challenges

Environmental challenges

Technical challenges

Our solution: Tackling the design and surge in

complexity in comprehensive display solutions

Complex challenges for displays... ...solved by

P

P

P

5

...amplified through the integration with…

Touchscreensto interact

Camerasto sense and view

VIA optronics at a glance

6Note(s): Full year financials based on audited IFRS figures; 2020 interim financials based on preliminary and unaudited reports; (1) As of 30 June 2020, in combination with VTS-Touchsensor Co., Ltd.

~650FTEs

worldwide

~30kTotal sqm.

total production facility

space

~6.3mDisplays shipped

since 2012

111(1)

Patents

granted internationally with

53 more pending

€3.5m (8.0%)

EBITDA (margin)

Q3 2020

2,000bpsEBITDA margin

growth

Q3 2019 – Q3 2020

Blue chip customer base

worldwide

Strong growthmomentum

Revenue CAGR

Q3 2020 – Q3 2019 > 42.5%

Q2 – Q3 2020: > 11.2%

€43.6

Revenue

Q3 2020

Market & Positioning / Superior value proposition / Partner of choice / Operational excellence / Proven track-record / Growth strategy

We address a large and structurally growing display

market...

7Note(s): (1) Total market for displays in 2020; (2) Total addressable market, representing display sales of PC monitors, laptops, automotive displays, large display formats and tablets, excluding TVs, smartphones, wearables and other products

Source(s): MarketsAndMarkets 2020 (post COVID-19) - To our knowledge, third-party industry data referenced herein includes estimates and projections regarding our total addressable market take into account early and preliminary information

about the known and potential future effects of the worldwide COVID-19 pandemic, the impacts of which are continuing and evolving over time. Accordingly, those projections may be overstated and should not be given undue weight.

Rising adoption of “anywhere devices”

Technological advancements

increase potential for new use

cases

Increase of

touch-based

devices

Drivers

1

2

3

$43.5bn2020E TAM2

today

Demand trends

Highly sophisticated

display solutions

Flexible

touch solutions

Shift from components

to systems

$49.5bn2024E TAM2

$107.0bn2020E Global Display Sales1

4.8

8.2

2020E 2024E

...with a clear focus on attractive growth segments


14.5% CAGR9.1% CAGR

US$ (in bn) US$ (in bn)

Industrial/ Specialized Applications Automotive

Note(s): (1) CAGRs refer to 2020-2024; (2) Banking, financial services and insurance

Source(s): MarketsAndMarkets 2020 (post COVID-19)

Driven by rapidly expanding use cases Driven by use of multiple displays and

increasingly complex customization

17%

Enterprise

13%

Education

21%

Sport & Entertainment

21%

Aerospace & Defense

18%

Global Retail, Hospitality, & BSFI(2)

8

...In-car

entertainment

…

(1) (1)(1)

(1) (1)

7.8

11.0

2020E 2024E

Smart car

displays

Mirror

replacement

Our global sales and supply chain combine engineering

excellence with high production efficiencyMarket & Positioning / Superior value proposition / Partner of choice / Operational excellence / Proven track-record / Growth strategy

Sales and Support Production siteR&D and Engineering

Satte & Shiga 14,874 sqm

Taipei LagunaOrlando

Nuremberg (HQ) 4,435 sqm Suzhou 10,257 sqm

We provide our clients with the advantages of a global supply chain

10Note(s): Interchangeable set-up of production facilities allows for flexible shift of production volumes

Countries of VIA‘s presence / selected customers

Ingredients of the Interactive Display Systems (IDS)

11

Interactive Display Systems development requires system software and video communications protocols expertise

…display…Sense… …interact… …process

Surround

View

Front

Sensing

Rear View

A-Pillar View

Front View

Passenger

Monitoring Mirror

Replacement



12

High sunlight readability, transparent and non-yellowing

Shock, dust, and water resistant

Extreme temperature stability and humidity resistance

Touch sensor with superior pen and glove functionality

Invisible and bendable touch for automotive and industrial

solutions

Multiple form factors, such as curved, dual displays under

one cover lens

Ultra thin and narrow bezel

Lower power consumption

Environmentally friendly while also reworkable

Wide array of sizes

Provider of

fully-integrated

solutions

In-house

camera

expertise

Value-add

along the value

chain

Precise touch

sensibilityConductivity

Superior pen

and glove

functionality

Sensors SystemsDisplay

Sunlight

readability

P

Resistance in

rough

environments

P

Optical

bonding

P P P P P P P

VIA’s differentiating capabilities are built upon its proprietary display technology….

…and its in-house expertise in all key technologies of an interactive display system

VIA optronics’ competitive advantage……underpinned by 111(1) granted patents & 53 additional pending patent applications

Note(s): (1) As of 30 June 2020, in combination with VTS-Touchsensor Co., Ltd.

We have built a technology platform with a strong

focus on value creation

Note(s): VIA optronics‘ positioning highlighted in red


Tier 4Sourcing R & DPrecision

engineeringDistributionManufacturing

Raw material, backlight, sensors,

glass and others

Technological competence Fully integrated & scalable platform Highest quality standards Flexible setup for tailored solutions

Prototyping, process

development as well as testing

Technology development and

integration

14

Precision engineering of panels

and packagingSystem integrators

Semi-automated and fully-automated production

facilities with leading efficiency

15


State-of-the-art manufacturing setup with

semi-automated and fully-automated

production lines

High level of customization with

flexible and modular design

Sophisticated and optimized

assembly processes

Automated quality control measures

Manufacturing &

Engineering

Platforms

Commercial partnership with industry leader Corning

16

Grow across existing customers

A strong partnership with one of the leading glass producers

in the technology sector

Core Technologies

Ability to produce with Corning’s

ColdFormTM technology cold-formed glass

on frame products as well as three

dimensional formed surface products

Corning invested $20m

in VIA optronics as a strategic partner

Market-Access

Platforms

Streamlining of precision forming activities

for improved cost-efficiency

Similar end-market exposure allows for

attractive synergy potential

c


Key Investment Highlights

17

Market &

Positioning

Superior Value

Proposition

Partner of

Choice

Operational

Excellence

Proven Track-

Record

Growth

Strategy

Large and growing TAM driven by structural tailwinds and rise of use cases

Innovative and state-of-the-art display solutions tailored to customer needs

Uniquely positioned as trusted partner for high quality, blue chip

customer base

Industry-leading manufacturing competence with a global and largely

integrated supply chain

Well-invested technology platform ready to scale

Clear building blocks for future growth already identified by management

Key financial highlights


Key

Financial

Highlights

Diversified revenue from various products

and end markets

Well-invested technology platform ready

to scale

Strong growth trajectory

Profitable business model

18

VIA has implemented measures to tackle the

COVID-19 situation

Conscious reduction of costs and focusing on core business activities

Continuing shift towards high-margin business lines

High flexibility in production and organization

Implementing comprehensive and sustainable efficiency measures

Thanks to the management’s timely response to the COVID-19 pandemic, VIA was able to

secure profitability in YTD Q3 2020, despite a highly volatile business environment

19


32.9

37.7

30.6

25.7

39.2

43.6

0

5

10

15

20

25

30

35

40

45

50

Q1 Q2 Q3

2019 2020

131.0150.3

113.4

21.4(48.6)

11.7 23.9

2.5

2016A 2017A 2018A 2019A

Despite challenging circumstances, revenues have

rebounded

▪ In recent years, VIA showed a strong, organic growth trajectory further accelerated by the VTS

acquisition in 2018

▪ The revenue decrease in 2019 was caused by reduced sales to several customers, e.g. as a result

of delays in their production cycle that were triggered by a global shortage of Intel microprocessor

chips.

▪ Despite the challenging COVID-19 situation, management was

able to achieve higher revenues compared to 2019 Q2 on the

back of profitable growth initiatives

One-off

supplier and

customer

effect

COVID-19

effects

In EURm

20

31%

(20)%

(22)% 4%


Note(s): Full year financials based on audited IFRS figures; quarterly financials based on preliminary and unaudited reports

Display Technology Sensor Technology

Hyper growth Platform investments Profitable growth

2019A

2019A

2019A

2019A

External

effect offset

by revenue

growth

137.2

171.7

131.0

Growth in

difficult

market

environment

2020A

2020A

2019A

2020A

42.5%

Strong rebound of EBITDA in a challenging market

environment

▪ The company’s gross profit decreased in 2019 because of fixed personnel costs that could not

be compensated by increased revenues as well as the purchase of inventory from third parties

due to heightened demand for our product resulting in high inventory stock costs


▪ Cost saving measurements implemented at VIA

Display Technology and VTS respectively are

showing positive effect

In EURm

21

37%

2019A

2020A

2019A

EBITDA

margin: 4.5% 4.7% n.m. 5.1% 6.7%

Note(s): Full year financials based on audited IFRS figures; quarterly financials based on preliminary and unaudited reports; (1) One-off effects refer to supplier and customer effects

One-off

effects1

5.9

8.1

(4.4)

2016A 2017A 2018A 2019A

Strong

rebound

(0.8)

1.1

(3.7)

1.3

2.6

3.5

Q1 Q2 Q3

2019 2020

8.0%

EBITDA

Margin 2020:

Key building blocks for future growth


Tomorrow

Today

Growth acceleration supported by capitalizing on M&A opportunities in the field of interactive solutions

Product Enhancement/

Optimization of ProductionExpansion/Organic Growth

22

Research and

Development

- Interactive display solutions

- Three-dimensional displays

- Embedded computing

Expansion of

production facilities

- Enhancing overall automation

- Expansion into further

geographic areas

Current customer

expansion

- Increase of distribution team

- Investments in marketing

activities

Future customer

expansion

- Investments into and increase

of the sales team

High visibility of future growth driven by several

new project wins

23


Over 500 projects in

process across all development

phases

Projects wins for new customers

as well as recurring projects for

existing customers

Demand for customized high

technology systems (e.g.

interactive complete dashboard

displays)

TouchDisplay

Investments in future technologies to drive profitable

growthMarket & Positioning / Superior value proposition / Partner of choice / Operational excellence / Proven track-record / Growth strategy

24

Autonomous

driving …

Software

With our expertise and exposure to several application fields…

…. we can unleash the full potential of our platform by transforming

VIA optronics into a market leading interactive systems provider

… and our combination and integration of each of them…

Camera

Algorithm

development

Traffic sign

recognition

Thank you!

Company Presentation 2020 · 2020. 12. 2. · Director and shareholder of iBRAIN Consulting Group...

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